What happened with Japan?
It really is true that the united states demanded a lot of things of Japan when the bilateral trade imbalances became large in the mid-1980s and among the demands was an appreciation of the yen. It really is true that the yen appreciated sharply from 260 yen/ dollar in February 1985 to 155 yen/dollar in August 1986, that was among the fastest appreciation episodes ever sold. It really is true that Japan underperformed its prospect of the majority of the 1990s and 2000s. The common growth rate from 1993 to 2003 was just above 1%, and the decade was marked by one crisis after another in the banking sector. Nonetheless it is too simplistic to state that the united states pressured Japan into accepting sharp yen appreciation and that, subsequently, caused two lost decades.