The Yen Foreign Exchange Rate - Revision history

Erik at 06:33, 25 April 2024

2024-04-25T06:33:54Z

Erik at 05:49, 19 July 2021

2021-07-19T05:49:55Z

Erik: Created page with "To compare the value of two currencies it is important to correct for inflation. After all a US dollar now can buy significantly less than a decade ago. The following chart s..."

2020-03-08T05:52:00Z

Created page with "To compare the value of two currencies it is important to correct for inflation. After all a US dollar now can buy significantly less than a decade ago. The following chart s..."

New page

To compare the value of two currencies it is important to correct for inflation. After all a US dollar now can buy significantly less than a decade ago.
The following chart shows the exchange rate corrected by inflation as reported in the CPI.

[[image:jpy usd inflation corrected.jpg]]

Looking at this chart the yen currently looks seriously undervalued as it is way above it's long term mean. According to the [http://en.wikipedia.org/wiki/Big_Mac_Index Big Mac Index] by the [http://www.economist.com Economist] the yen is also undervalued [http://www.economist.com/node/16646178?story_id=16646178]. However according to an [http://www.voxeu.org/index.php?q=node/624 article] by David Weinstein the methodology to calculate the CPI in Japan differs from the US and results in an overstatement of inflation by 0.8% compared to the US. This would mean that the yen is even more undervalued. The average inflation corrected rate since the yen started floating after the [http://en.wikipedia.org/wiki/Plaza_Accord Plaza Accord] is 86.15.

← Older revision		Revision as of 06:33, 25 April 2024
Line 4:		Line 4:
	[[image:jpy usd inflation corrected.jpg]]		[[image:jpy usd inflation corrected.jpg]]

−	Looking at this chart the yen currently looks seriously undervalued as it is way above it's long term mean. According to the [http://en.wikipedia.org/wiki/Big_Mac_Index Big Mac Index] by the [http://www.economist.com Economist] the yen is also undervalued [http://www.economist.com/node/16646178?story_id=16646178]. However according to an [http://www.voxeu.org/index.php?q=node/624 article] by David Weinstein the methodology to calculate the CPI in Japan differs from the US and results in an overstatement of inflation by 0.8% compared to the US. This would mean that the yen is even more undervalued. The average inflation corrected rate since the yen started floating after the [http://en.wikipedia.org/wiki/Plaza_Accord Plaza Accord] is 80.97.	+	Looking at this chart the yen currently looks seriously undervalued as it is way above it's long term mean. According to the [http://en.wikipedia.org/wiki/Big_Mac_Index Big Mac Index] by the [http://www.economist.com Economist] the yen is also undervalued [http://www.economist.com/node/16646178?story_id=16646178]. However according to an [http://www.voxeu.org/index.php?q=node/624 article] by David Weinstein the methodology to calculate the CPI in Japan differs from the US and results in an overstatement of inflation by 0.8% compared to the US. This would mean that the yen is even more undervalued. The average inflation corrected rate since the yen started floating after the [http://en.wikipedia.org/wiki/Plaza_Accord Plaza Accord] is 79.30.

← Older revision		Revision as of 05:49, 19 July 2021
Line 4:		Line 4:
	[[image:jpy usd inflation corrected.jpg]]		[[image:jpy usd inflation corrected.jpg]]

−	Looking at this chart the yen currently looks seriously undervalued as it is way above it's long term mean. According to the [http://en.wikipedia.org/wiki/Big_Mac_Index Big Mac Index] by the [http://www.economist.com Economist] the yen is also undervalued [http://www.economist.com/node/16646178?story_id=16646178]. However according to an [http://www.voxeu.org/index.php?q=node/624 article] by David Weinstein the methodology to calculate the CPI in Japan differs from the US and results in an overstatement of inflation by 0.8% compared to the US. This would mean that the yen is even more undervalued. The average inflation corrected rate since the yen started floating after the [http://en.wikipedia.org/wiki/Plaza_Accord Plaza Accord] is 86.15.	+	Looking at this chart the yen currently looks seriously undervalued as it is way above it's long term mean. According to the [http://en.wikipedia.org/wiki/Big_Mac_Index Big Mac Index] by the [http://www.economist.com Economist] the yen is also undervalued [http://www.economist.com/node/16646178?story_id=16646178]. However according to an [http://www.voxeu.org/index.php?q=node/624 article] by David Weinstein the methodology to calculate the CPI in Japan differs from the US and results in an overstatement of inflation by 0.8% compared to the US. This would mean that the yen is even more undervalued. The average inflation corrected rate since the yen started floating after the [http://en.wikipedia.org/wiki/Plaza_Accord Plaza Accord] is 80.97.