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4 unusual facts about Plaza Accord


Mitsubishi Debonair

The motivation to introduce a modern looking, executive level luxury sedan also took place in what has become known as the Japanese asset price bubble period that began after the Plaza Accord agreement in 1985.

Plaza Accord

The five governments signed the accord on September 22, 1985 at the Plaza Hotel in New York City.

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 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.



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