Governance

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Blog Post - Views on the Economy and the World

September 22 is the 30th Anniversary of the Plaza Accord

| Sep. 22, 2015
Exactly 30 years ago, on September 22, 1985, ministers of the Group of Five countries met at the Plaza Hotel in New York and agreed on a successful initiative to reverse what had been a dangerously overvalued dollar. The Plaza Accord was backed up by intervention in the foreign exchange market. The change in policy had the desired effect over the next few years: bringing down the dollar, reducing the US trade deficit and defusing protectionist pressures.  Many economists think that foreign exchange intervention cannot have effects unless it also changes money supplies.