Agreeing to Boost the Yen

The U.S. and Japan put together a currency deal

When American businessmen complain about unfair Japanese competition, high on their gripe list is the value of the yen. Many executives contend that restrictions in the Japanese financial system have kept the yen artificially cheap compared with the dollar, and thus have made it easier for Japanese manufacturers to keep prices low when selling their products abroad. In a speech in Detroit earlier this month, Chrysler Chairman Lee Iacocca declaimed, "The Japanese yen is undervalued by at least 15%, and everyone in Washington agrees on that."

Heedful of these complaints, the Reagan Administration has...

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