The _____ suggested that it would be desirable for most major currencies to appreciate relative to the dollar,and signatories pledged to intervene in the foreign exchange markets,selling dollars,to achieve this objective.

Question

Quizplus · Accepted Answer

The Plaza Accord, signed in 1985, suggested that major currencies (including the Japanese Yen, German Deutsche Mark, and British Pound) should appreciate relative to the US dollar, in order to rebalance global trade and reduce US trade deficits. Signatories pledged to intervene in foreign exchange markets, selling dollars and buying other currencies, to achieve this objective. The Louvre Accord, signed in 1987, was a follow-up to the Plaza Accord and reaffirmed the commitment to exchange rate stability. The Bretton Woods Agreement (1944) established the post-World War II global monetary system, while the gold standard tied a currency's value to a fixed amount of gold.

The _____ Suggested That It Would Be Desirable for Most