Yen Intervention Sets a Precedent for Future Interventions

Last week’s surprise announcement that the U.S. Treasury Department would assist Japan in propping up the yen has raised questions about what motivated it and what the policy implications are. Following the announcement, the yen surged from a 40-year low of 163 yen per dollar to 155 yen per dollar, but it has since surrendered half of its gains.   Read Full Article »