Japan SPOTLIGHT November/December 2013 issue
COVER STORY:Abenomics' Impact on the Global Economy
Following our introduction of Abenomics in the last issue, we now focus on its impact upon the international economy. Japan's new macropolicies have so far been well received by the rest of the world. According to economic theory, under a so-called open economy where goods and capital move freely all over the world, exchange rates will be affected by macropolicies through movements in interest rates. Thus exchange rates would be a key channel for any given country's macropolicies to affect other national economies.
In this issue, we look at predictions of future exchange rate movements, which could be affected by numerous background factors including macropolicies, and then assess those exchange rate movements' impact upon the international economy.