IDEAS home Printed from
   My bibliography  Save this paper

A Vulnerable Power in the World Economy: Japan's Economic Diplomacy and the Yen


  • Toru Iwami

    (Faculty of Economics, University of Tokyo)


The volatile yen/dollar exchange rate has largely influenced Japan's business cycles and foreign economic relations from the 1980s. In particular to note is the triangular pattern of trade interdependence which appeared following the rising yen exchange rate and a increased scale of Foreign Direct Investments from Japan. Along with the post-bubble recession, however, the global position of the yen has also declined. The more international use of the currency, although recommended by policy-makers and economists, is limited because of the fact that Japanese economy stands on two pillars, the United States and East Asia, and the latter is more dependent on the former than on Japan.

Suggested Citation

  • Toru Iwami, 2000. "A Vulnerable Power in the World Economy: Japan's Economic Diplomacy and the Yen," CIRJE F-Series CIRJE-F-73, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2000cf73

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2000cf73. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.