The Teaching Notes contain suggested answers and teaching pointers for the case questions.

A summary of macroeconomic events relevant to this question has been introduced in the case, the details of which can be found in an International Monetary Fund (IMF) document (IMF 2011).

The economic events that led to the 2011 Olympus scandal began in September 1985. Delegates from the G5 countries (France, Japan, Germany, U.K., and U.S.) met at the Plaza Hotel in New York. These delegates declared the U.S. dollar overvalued and announced a plan to correct the situation. The essence of the plan was that Japan and Germany, countries with current account surpluses, would boost domestic demand and appreciate their currencies. This triggered an exceptionally large appreciation of the yen, amounting to 46 percent against the dollar and 30 percent in real terms by the end of 1986. (The deutsche mark appreciated similarly.) As...

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