01771cas a2200253 a 4500 AALejournalIMF000150 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855333 1018-5941 BD-DhAAL BD-DhAAL Prasad, Eswar. Real Exchange Rate Fluctuations and the Business Cycle : Evidence From Japan / Eswar Prasad, Bankim Chadha. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the relationship between the real exchange rate and the business cycle in Japan during the floating rate period. A structural vector autoregression is used to identify different types of macroeconomic shocks that determine fluctuations in aggregate output and the real exchange rate. Relative nominal and real demand shocks are found to be the main determinants of variation in real exchange rate changes, while relative output growth is driven primarily by supply shocks. Historical decompositions suggest that the sharp appreciations of the yen in 1993 and 1995 and its subsequent depreciation can be attributed primarily to relative nominal shocks. Mode of access: Internet Chadha, Bankim. IMF Working Papers; Working Paper ; No. 1996/132 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/132/001.1996.issue-132-en.xml IMF e-Library