DOES EXCHANGE RATE VOLATILITY MATTER FOR THE BALANCING ITEM OF BALANCE OF PAYMENTS ACCOUNTS IN JAPAN? AN EMPIRICAL NOTE

摘要

This study has examined the influences of exchange rate volatility on the balancing item in Japan's balance of payments accounts. The results suggest that exchange rate volatility does explain the balancing item for Japan, but its effect is small. Indeed, this study finds that the Japan's balancing item is of timing error in nature.