Note 3-11

11 According to a simulation using parameters estimated by the export-import volumes function, the income effect, which corresponds to the reduction in the surplus in net exports in real terms resulting from a 10% increase in the nominal effective exchange rate during yen appreciation, required about a 6.5% difference in the real growth rate between Japan and other countries in the 1980s, but the same reduction in the surplus was realized in the 1990s with about a 5.5% difference in the real growth rate.