Buzz of a 1980s-Style Plaza Accord

 Through this 1985 agreement, major nations drove currency down

The dollar’s skyrocketing rise has some contemplating a rare, if not unthinkable, action: major nations agreeing to manipulate the US currency until it falls.

Through that agreement, France, Japan, the UK, US and West Germany agreed to weaken the dollar -- a stance taken out of a belief that the dollar’s huge move higher was damaging the global economy.

https://www.bloomberg.com/news/articles/2022-05-18/surging-dollar-stirs-markets-buzz-of-a-1980s-style-plaza-accord


Plaza Accord

https://englundmacro.blogspot.com/2021/04/us-trade-deficit-which-has-returned-to.html




Donald Trump briefly owned the Plaza--hence his cameo appearance giving directions to Macaulay Culkin in Home Alone 2:

Lost in New York set in--where else--the New York Plaza.


John Connally, when Treasury secretary in President Richard Nixon’s cabinet, famously told his European counterparts in 1971 that the dollar “is our currency but your problem”

https://englundmacro.blogspot.com/2021/06/powells-dollar-chinas-problem-and.html


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