Does Dollar Depreciation Matter: The Case of Auto Imports from Japan
In April 1987, the value of the U.S. dollar fell substantially, continuing a slide that began in February 1985 when the dollar peaked in relation to most currencies. Then worth more than 262 Japanese yen, the dollar is currently trading at about 140 yen. This means that it now takes 85 percent more dollars than it did in February 1985 to buy the same amount of yen. The dollar has demonstrated similar movements relative to currencies of some other major trading partners.
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