Discuss if such external pressures would help in reducing the US current account deficits.

a)In recent months the Central Bank of Japan (BOJ) has been actively trying to prevent the apprecia Show more a)In recent months the Central Bank of Japan (BOJ) has been actively trying to prevent the appreciation of the value of the Yen against the US dollar. If the BOJ wants to leave the Yen money supply unchanged while intervening in the foreign exchange market describe how it will conduct a sterilized intervention? b)Suppose the united States asked China and Japan to adopt expansionary fiscal and monetary policy so as to increase their demand for US exports. Discuss if such external pressures would help in reducing the US current account deficits. Assess the impact of the respective policy change. Show less

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Approximately 250 words