The Yen

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…According to the Purchase Price Parity model (PPP) deflation in the Japanese market should make the Yen stronger relative to the US dollar. With the decreasing output of the Japanese economy, the low interest rates and the increase in the money supply will affect the Yen negatively. Therefore the outlook for the Yen for 2002 and 2003 will be neutral to weakening Yen. Chart from Pacific Policy Analysis Computing & information Facility in Commerce, Univ. of British Columbia