1. Team: Alessandro Agnone Byron Ortega Carlos Lopez Japanese ¥en Devaluation

2. Agenda: Yen before devaluation. How the devaluation took place. Outcome of the devaluation. Conclusions Japanese ¥en Devaluation

3. ¥en before devaluation Commercial Balance (Japan’s Position) Superavit Deficit Source: International Monetary Fund

4. Yen Before devaluation Revaluation between 2008 before World’s crisis to Sept 2010 aprox. 25% Source: Oanda - Macroeconomic changes - Monetary policies

5. Yen Before devaluation Revaluation between Jan 2010 to Sept 2010 10.51% Source: Oanda

6. How the devaluation took place? The price of the USD Against yen reached the lowest point in the last 15 year. Chief Cabinet Secretary Yoshito Sengoku established that S(¥/$) Would be 82 the line of defense. Japan Sold Yens to devaluate the currency in the US and Japan Markets The measures were applied after Exporters pressure. But the measures could not have any effect if the international markets does not support Japanese efforts.

7. Devaluation Effect Source: Oanda

8. Japanese Yen vs US dollar

9. A Japanese exporter doing business with the US

10. Total export for Japan

11. Conclusions  Government intervention  Were able to stabilize the currency  Currency war (will lead to competitive devaluations)  Two side of the coin (exporters – importers)  Government intervention creates more speculation and is not an efficient market Will Japan alone be able to keep the Yen from rising?