دریچه تفاوت زمانی: آیا استهلاک ین ژاپن به هدفگذاری تورم ضربه خواهد زد؟

This paper argues that the exchange rate could be a powerful transmission channel of the effects of ongoing “unconventional” monetary policies in Japan. It is shown that exchange rate pass-through to domestic prices, once considered near-extinct, has come back strong in recent years. This is especially true for those items that households purchase frequently. Evidence based on VARs as well as TVP-VARs indicates that a 25% depreciation of the yen would produce a 2% increase in the prices of those items. This could have an additional benefit of raising the public’s expectation about future inflation, as their beliefs are often said to be influenced by their daily observations about prices of those items that they buy frequently.