Some observations on the Japanese-American economic relations

Abstract

This article deals with economic relations between Japan and the United States. While there are no clashes of vital interest of a political nature, and thus differences and misunderstandings can be resolved with relative ease, in the economic area Japanese-American relations are more complicated. There have been serious divergences of opinion in the field of international monetary arrangements and commercial policy, and there are conflicts of interest among special groups. While the author argues that there are no major economic clashes of interest between the two countries, massive or rapid changes could cause serious troubles of adjustment and economic harm. The specific issues considered are the international monetary arrangements between the Yen and the Dollar, possible adverse effects of a decumulation of reserves, methods to stop reserve accumulation, convertibility of the dollar and trade problems.

JEL: F33, F40, F50