Note 1-88

(88) An estimation made by including the ratio of cumulative current account to Nominal GDP and the disparity in inflation rate between Japan and the U.S., as well as the ratio of Japanese and U.S. monetary base to Nominal GDP, as explanatory variable of the yen-dollar exchange rate, shows that they are all significant variables (See Appended Note 1-12). As for the change of yen-dollar exchange rates and the ratio of monetary base to Nominal GDP, see Figure 1-3-7.