1997 Fiscal Year Final Research Report Summary
An Econometric Analysis of Japan's Exchange Rate Systems
| Project/Area Number |
07630083
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | Osaka University |
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Principal Investigator |
TAKAGI Shinji Osaka University, Faculty of Economics, Professor, 経済学部, 教授 (20226749)
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| Project Period (FY) |
1995 – 1997
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| Keywords | exchange control / prewar exchange rate system / Japanese exchange rate systems |
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| Research Abstract |
The purpose of this research has been to gather and organuze source materials and data related to Japan's past exchange rate systems and to make preliminary econometric analyzes of them. During the past 3 years, the investigator has obtained from various places reference materials related to Japan's experience with the gold standard, the interwar flexible exchange rate regime, and the restrictive payment system of the immediate postwar years, from which two research papers ("Japan's Exchange Rate Policy during the Intewar Period" and "Japan's Restrictive System of Trade and Payments : Operation, Effectiveness, and Liberalization, 1950-1964") have been prepared. The first paper summarizes the pertinent facts related to the interwar exchange rate system and discusses both economic and political factors behind the policy measures taken during this period, frequently drawing on the information obtained from the contemporary sources. A rigorous econometric analysis has not yet been performed, however, because the data were collected too late to allow the results to be completed within the project term. The second paper discusses the operation and liberalization of the restrictive system of the immediate postwar years, emphasizing its role as a tool of external adjustment. A preliminary econometric analysis suggests that the effectiveness of the restrictive system as a tool of external adjustment was limited at best even during the very early period, and that the system lost more and more of its effectiveness as it was increasingly liberalized from the latter part of the 1950s.
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