Dynamics of exchange rate fluctuations between yen and the us-dollar

• OBARA, Takashi ^[1]
  1. [1] Nihon University

     Nihon University

     Japón

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 4, Nº. 1, 2004, págs. 95-104
• Idioma: inglés
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• Resumen

  • Fluctuations of yen exchange rate to US-dollar are analyzed by a method of classical mechanics. The fluctuations are explained by a linear inhomogeneous differential equation of the second order with a constant coefficient. The inhomogeneous term is an external force.

    Using a method of the least squares, we determine a polynomial expression of the external force. It is known that the depreciation of yen is caused by decreasing of the external force toward its minimum.