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Retrieve the nominal exchange rates between Japan and the United States from the Federal Reserve Bank of St. Louis FRED data site. It is series AEXJPUS.
a. Plot the yen versus the dollar since 1971. During which times period(s) did the yen appreciate? During which period(s) did the yen depreciate?
b. Given the current Japanese slump (although there are some encouraging signs at the time of this writing), one way of increasing demand would be to make Japanese goods more attractive. Does this require an appreciation or a depreciation of the yen?
c. What has happened to the yen during the past few years? Has it appreciated or depreciated? Is this good or bad for Japan?
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