In addition, the annual range of fluctuation for the dollar/yen exchange rate throughout 2019 was as narrow as around 8 yen, the smallest figure recorded since the adoption of the floating exchange rate system in 1973. I would like to point out the following as background to these developments.
The model used for policy analysis at the Board, the FRB-US model, however, explicitly incorporates both of them. There are other complications. For example, the acceleration in productivity has contributed to the swing from deficit to surplus in the federal budget and appears to have encouraged an appreciation of the dollar.