1
Plaza Accord of 1985 Leads to Dollar Depreciation
Plaza Accord of 1985 Leads to Dollar Depreciation
DATE: 2007/08/11::
2
Plaza Accord
Plaza Accord
DATE: 2012/10/31::
3
FOREX Currency Wars: Japanese Yen at 1985 Plaza Accord Retracement Levels!
FOREX Currency Wars: Japanese Yen at 1985 Plaza Accord Retracement Levels!
DATE: 2014/12/03::
4
the Plaza Accord and the IMF
the Plaza Accord and the IMF's SDRs
DATE: 2010/06/13::
5
Global Imbalance and China Revisited: Yen and Yuan; Another Plaza Accord
Global Imbalance and China Revisited: Yen and Yuan; Another Plaza Accord
DATE: 2013/02/01::
6
car stereo plaza accord part 1
car stereo plaza accord part 1
DATE: 2011/10/02::
7
car stereo plaza accord part 2
car stereo plaza accord part 2
DATE: 2011/10/05::
8
That Plaza Hotel where that Plaza Accord was done in Sept 1985
That Plaza Hotel where that Plaza Accord was done in Sept 1985
DATE: 2014/11/02::
9
Understanding the Japanese Economy (Art and Finance Vlog #1)
Understanding the Japanese Economy (Art and Finance Vlog #1)
DATE: 2015/02/24::
10
The Bangladesh Accord: Lessons for Central American Garment Workers
The Bangladesh Accord: Lessons for Central American Garment Workers
DATE: 2015/04/10::
11
Brazil
Brazil's Mantega Says G-20 Can Agree on Currency Accord: Video
DATE: 2012/03/23::
12
Saujana Putra Exit 2012.24 SKVE Highway PLUS Toll Plaza Honda Accord (Mini GTR) Drive down
Saujana Putra Exit 2012.24 SKVE Highway PLUS Toll Plaza Honda Accord (Mini GTR) Drive down
DATE: 2013/08/31::
13
Philip Jennings - one year on from Rana Plaza
Philip Jennings - one year on from Rana Plaza
DATE: 2014/04/22::
14
Rana Plaza Disaster: Activists form human chain in Oxford Street
Rana Plaza Disaster: Activists form human chain in Oxford Street's Gap Shop
DATE: 2014/04/24::
15
1996 Honda  Accord Sdn LX - Auto Plaza Palm Desert
1996 Honda Accord Sdn LX - Auto Plaza Palm Desert
DATE: 2015/05/15::
16
Rana Plaza Victims of Fashion
Rana Plaza Victims of Fashion
DATE: 2015/04/18::
17
Progress update on Bangladesh Accord on Fire and Building Safety - April 2015
Progress update on Bangladesh Accord on Fire and Building Safety - April 2015
DATE: 2015/04/23::
18
Is Our Trade Deficit a Problem? Foreign Exchange Reserves, Money Markets, Forex (2005)
Is Our Trade Deficit a Problem? Foreign Exchange Reserves, Money Markets, Forex (2005)
DATE: 2014/08/29::
19
Ireland calls for justice for Rana Plaza workers 24 April 2014
Ireland calls for justice for Rana Plaza workers 24 April 2014
DATE: 2014/04/25::
20
Honda Accord LX MANUAL @ Extreme Auto Plaza
Honda Accord LX MANUAL @ Extreme Auto Plaza
DATE: 2011/10/12::
21
Most US Retailers Choose Not to Sign Bangladesh Factories Accord
Most US Retailers Choose Not to Sign Bangladesh Factories Accord
DATE: 2013/06/17::
22
IISS-US Adelphi Book Launch: The Power of Currencies and Currencies of Power
IISS-US Adelphi Book Launch: The Power of Currencies and Currencies of Power
DATE: 2014/03/06::
23
shalom 望郷/cinema staff
shalom 望郷/cinema staff
DATE: 2014/12/28::
24
2015 Honda Accord Coupe Cedar Falls IA H8827
2015 Honda Accord Coupe Cedar Falls IA H8827
DATE: 2014/09/10::
25
Little My/オーシャンゼリゼ
Little My/オーシャンゼリゼ
DATE: 2015/01/06::
26
2008 Honda Accord for sale in SAINT LOUIS, MO 63132 at the W
2008 Honda Accord for sale in SAINT LOUIS, MO 63132 at the W
DATE: 2015/05/11::
27
Hermitage : l
Hermitage : l'accord de financement bouclé en octobre
DATE: 2013/04/02::
28
Second Anniversary of the Rana Plaza building collapse: statements by Cecilia Malmström
Second Anniversary of the Rana Plaza building collapse: statements by Cecilia Malmström
DATE: 2015/04/28::
29
Matthew Kellway – Petitions – Rana Plaza Collapse (2015 04 23)
Matthew Kellway – Petitions – Rana Plaza Collapse (2015 04 23)
DATE: 2015/04/23::
30
2000 Honda Accord DX sedan - for sale in Roseville, CA 95678
2000 Honda Accord DX sedan - for sale in Roseville, CA 95678
DATE: 2013/06/10::
31
Honda 2013 Accord Sport (Teaser Video)
Honda 2013 Accord Sport (Teaser Video)
DATE: 2012/09/24::
32
2003 Honda Accord Used Cars Orlando FL
2003 Honda Accord Used Cars Orlando FL
DATE: 2015/04/25::
33
2006 Honda Accord EX-L Sedan with XM Radio - for sale in Ros
2006 Honda Accord EX-L Sedan with XM Radio - for sale in Ros
DATE: 2013/08/10::
34
2015 Honda Accord Sedan Cedar Falls IA H9091
2015 Honda Accord Sedan Cedar Falls IA H9091
DATE: 2015/03/14::
35
Accord Winter Live 2014 CM その1
Accord Winter Live 2014 CM その1
DATE: 2014/10/25::
36
2008 Honda Accord EX-L V6 Sedan for sale in Houston, TX 7706
2008 Honda Accord EX-L V6 Sedan for sale in Houston, TX 7706
DATE: 2014/07/29::
37
こむぎ/最後の雨
こむぎ/最後の雨
DATE: 2014/11/23::
38
Shalom/雨の夜と月の光
Shalom/雨の夜と月の光
DATE: 2014/12/28::
39
2015 Honda Accord - Grand Blanc MI
2015 Honda Accord - Grand Blanc MI
DATE: 2015/02/28::
40
SUBASTASMA HONDA, ACCORD EX COUPE 2000
SUBASTASMA HONDA, ACCORD EX COUPE 2000
DATE: 2014/07/25::
41
2008 Honda Accord - Used Car Dealership - Atlantic City, New Jersey
2008 Honda Accord - Used Car Dealership - Atlantic City, New Jersey
DATE: 2014/01/31::
42
"Where is Japan
"Where is Japan's FTA/EPA Strategy Headed?," Briefing by Professor Yorizumi Watanabe
DATE: 2010/07/26::
43
L
L'après Rana Plaza : les français changeront-ils leurs habitudes de consommation ?
DATE: 2013/06/04::
44
İlginç ve Güzel Honda Accord Reklamı
İlginç ve Güzel Honda Accord Reklamı
DATE: 2014/02/21::
45
1999 Honda Accord EX  W/LEATHER - for sale in N Fort Myers,
1999 Honda Accord EX W/LEATHER - for sale in N Fort Myers,
DATE: 2013/07/16::
46
Washington Accord - MoA between PTC and PACUCOA 4/7
Washington Accord - MoA between PTC and PACUCOA 4/7
DATE: 2010/03/02::
47
2009 Honda Accord Sdn Cedar Falls IA H9123H
2009 Honda Accord Sdn Cedar Falls IA H9123H
DATE: 2015/05/06::
48
2012 Honda Accord Sdn Cedar Falls IA P3488
2012 Honda Accord Sdn Cedar Falls IA P3488
DATE: 2015/05/06::
49
2015 Honda Accord EX in Creve Coeur, MO 63141
2015 Honda Accord EX in Creve Coeur, MO 63141
DATE: 2015/04/27::
50
2002 Honda Accord LX 2dr Coupe for sale in Houston, TX 77063
2002 Honda Accord LX 2dr Coupe for sale in Houston, TX 77063
DATE: 2014/09/23::
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RESULTS [51 .. 101]
From Wikipedia, the free encyclopedia
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The 1985 "Plaza Accord" is named after New York City's Plaza Hotel, which was the location of a meeting of finance ministers who reached an agreement about managing the fluctuating value of the US dollar. From left are Gerhard Stoltenberg of West Germany, Pierre Bérégovoy of France, James A. Baker III of the United States, Nigel Lawson of Britain, and Noboru Takeshita of Japan.

The Plaza Accord or Plaza Agreement was an agreement between the governments of France, West Germany, Japan, the United States, and the United Kingdom, to depreciate the U.S. dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets. The five governments signed the accord on September 22, 1985 at the Plaza Hotel in New York City.

Background[edit]

Between 1980 and 1985 the dollar had appreciated by about 50% against the Japanese yen, Deutsche Mark, French Franc and British pound, the currencies of the next four biggest economies at the time.[1] This caused considerable difficulties for American industry but at first their lobbying was largely ignored by government. The financial sector was able to profit from the rising dollar, and a depreciation would have run counter to Ronald Reagan's administration's plans for bringing down inflation. A broad alliance of manufacturers, service providers, and farmers responded by running an increasingly high profile campaign asking for protection against foreign competition.

Major players included grain exporters, car producers, engineering companies like Caterpillar Inc., as well as high-tech companies including IBM and Motorola. By 1985, their campaign had acquired sufficient traction for Congress to begin considering passing protectionist laws. The prospect of trade restrictions spurred the White House to begin the negotiations that led to the Plaza Accord.[2][3]

The justification for the dollar's devaluation was twofold: to reduce the U.S. current account deficit, which had reached 3.5% of the GDP, and to help the U.S. economy to emerge from a serious recession that began in the early 1980s. The U.S. Federal Reserve System under Paul Volcker had halted the stagflation crisis of the 1970s by raising interest rates, but this resulted in the dollar becoming overvalued to the extent that it made industry in the U.S. (particularly the automobile industry) less competitive in the global market.

Effects[edit]

Devaluing the dollar made U.S. exports cheaper to purchase for its trading partners, which in turn allegedly meant that other countries would buy more American-made goods and services.

The exchange rate value of the dollar versus the yen declined by 51% from 1985 to 1987. Most of this devaluation was due to the $10 billion spent by the participating central banks.[citation needed] Currency speculation caused the dollar to continue its fall after the end of coordinated interventions. Unlike some similar financial crises, such as the Mexican and the Argentine financial crises of 1994 and 2001 respectively, this devaluation was planned, done in an orderly, pre-announced manner and did not lead to financial panic in the world markets. The Plaza Accord was successful in reducing the U.S. trade deficit with Western European nations but largely failed to fulfill its primary objective of alleviating the trade deficit with Japan. This deficit was due to structural conditions that were insensitive to monetary policy, specifically trade conditions.

The manufactured goods of the United States became more competitive in the exports market but were still largely unable to succeed in the Japanese domestic market due to Japan's structural restrictions on imports.

The recessionary effects of the strengthened yen in Japan's export-dependent economy created an incentive for the expansionary monetary policies that led to the Japanese asset price bubble of the late 1980s. The Louvre Accord was signed in 1987 to halt the continuing decline of the U.S. dollar.

The signing of the Plaza Accord was significant in that it reflected Japan's emergence as a real player in managing the international monetary system. Yet it is postulated[4] that it contributed to the Japanese asset price bubble, which ended up in a serious recession, the so-called Lost Decade.

See also[edit]

References[edit]

  1. ^ {{Cite OECD Economics Working Paper 390 - "Channels for Narrowing the US Current Account Deficit and Implications for Other Economies" | author = Brook, A, F Sedillot and P Ollivaud | chapter = Channel 1: Exchange Rate Adjustment | title = Channels for Narrowing the US Current Account Deficit and Implications for Other Economies | year = 2004 | page = 8 | fig = 3 | publisher = OECD | location = Oxford; New York | edition = online | doi = 10.1787/263550547141}}
  2. ^ Michael J. Hiscox (2005). "The Domestic Sources of Foreign Economic Policies". In John Ravenhill. Global Political Economy (First ed.). Oxford; New York: Oxford University Press. p. 65. ISBN 0-19-926584-4. OCLC 60383498. 
  3. ^ I. M. Destler, C. Randall Henning (1993). Dollar Politics: Exchange Rate Policymaking in the United States. Institute for International Economics. pp. 105–130. ISBN 0-19-926584-4. 
  4. ^ "China seeks to learn from mistakes of 1985 Plaza Accord". The Japan Times. 9 September 2006. Archived from the original on 28 January 2012. Retrieved 27 September 2011. 

External links[edit]

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