... 1971-73, 1977- 78, 1 985 -87 , and1993-95. As the US high officials (usually the Secretary of the Trea-sury, sometimes even the President) talk up the yen, the yen sharplyappreciates and the trade ... strongly, the Bank of Japan had to adopt this policy. This was called the the ceiling of the balance of payments” or “stop-go policy.” This was prac-ticed until the mid-1960s.To cope with the balance -of- payments ... the tough stance of the US trade negotiators. But was this view correct?Ronald McKinnon of Stanford University and the author refuted this view bypresenting the hypothesis of the Syndrome of...