The effect of the quantitative easing on the direction of the capital movement : the USD YEN exchange rate-econometrics study during the period 2008 m1-2019 m6

Abstract EN

In this study, we attempted to track the impact of quantitative easing on the currency of both Japan and the USA during the (2008M1-2019M6) study period by formulating a econometric model where the results indicated that due to the low long-term interest rates in Japan compared to the United States.

A.

This divergence in interest rates allowed the outflow of investments, as this movement reduced demand for the Japanese yen, causing a devaluation against the US dollar, which forces Japan to use this depreciation in its currency to encourage its exports