Recent Balance of Payments Developments in Japan: Is the Current Account Surplus Structural or Temporary?
Reflecting the synergistic effects of trade volume adjustment occasioned by the yen’s appreciation, domestic demand expansion and structural change in Japan’s economy, Japan’s current account surplus steadily contracted to $35.8 billion in 1990 after peaking in 1987. However, the surplus has rapidly increased again since 1991 and it reached a new peak of $117.6 billion in 1992 (3.3 per cent in terms of percentage of GNP). Such a recent surge in Japan’s current account surplus is provoking a serious problem. For Japan, one solution may be the recovery of domestic demand. Also, the effort to eliminate trade barriers in order to help to draw more imports must and will continue.
KeywordsIncome Volatility Univer
Unable to display preview. Download preview PDF.
- Bank of Japan 1989. ‘Expansion of Japan’s Tertiary Sector-Background and Macroeconomic Implications’, Special Paper No. 183, December.Google Scholar
- Bank of Japan 1991. ‘Recent Balance of Payments Developments in Japan’, Special Paper No. 208, November.Google Scholar
- Bank of Japan 1992. ‘Deregulation, Technological Progress, and Efficiency of the Banking Industry in Japan’. Special Paper No. 211, January.Google Scholar
- Bank of Japan 1993. ‘Functions of Stock Markets: Implications for Corporate Financial Activities’, Special Paper No. 225, February.Google Scholar
- Branson, W. 1985. ‘Causes of Appreciation and Volatility of the Dollar, The U.S. Dollar-Recent Developments, Outlook, and Policy Options’, Kansas City, Missouri: Federal Reserve Bank of Kansas City.Google Scholar
- Fukao, K. 1987. ‘The Japanese Investment-Savings Balance, the Current Account, and the Exchange Rates’, (in Japanese) Economic Review, 38, 3.Google Scholar
- Ueda, K. 1986. ‘Current Account and Exchange Rate — Investment-Saving Balance Approach’, (in Japanese), Monetary and Economic Studies, 5, 1.Google Scholar
- Ueda, K. 1992. ‘Monetary Policy under External Imbalance’ (in Japanese), Toyokeizai Shinposha.Google Scholar