Japan adopted "voluntary" caps on some exports to the US and, under the Plaza Accord
of late 1985, helped orchestrate yen revaluation relative to the dollar.
If the dollar surges, it is not clear a Plaza Accord
II is even possible.
The Plaza Accord
coordinated exchange rates among the countries present, in turn depreciating the dollar and restoring some equity to the global market.
Sterling sank 10 per cent in value to its weakest since before the 1985 Plaza Accord
on Friday after Britain voted to leave the European Union, triggering a global rush of capital into the traditional security of the yen and the Swiss franc.
However, there are no signs of coordinated central bank intervention to bring down the US dollar, a new twenty first century Plaza Accord
The question is whether the US and other reserve-currency countries will share the burden of maintaining global currency stability, through an agreement resembling the 1985 Plaza Accord
, in which five major economies agreed to depreciate the US dollar against the Japanese yen and the German Deutsche Mark.
Still, there appears to be little prospect of a deal along the lines of the 1985 Plaza Accord
, where the governments of the US, UK France, West Germany and Japan agreed to weaken the dollar.
Eleven chapters are: early life; experiences before and during World War II; the Ministry of Finance after JapanAEs defeat in World War II; negotiations with GHQ: the Dodge line and the Shoup tax system; attending the San Francisco Peace Conference; the beginnings of the Kochikai, and the Anpo protests; IkedaAEs visit to America and historic meeting with President Kennedy; the Japan-US textile negotiations; from the Plaza Accord
to the collapse of the bubble economy; Miyazawa as Prime Minister; considering twenty-first-century Japan.
The yen's Bretton Woods peg was 360 to the dollar, and its Plaza Accord
rate was 270.
With the Plaza Accord
signed in 1985, the US un-folded the productivity of US industry and increased industrial exports by keeping the dollar lower than the German mark and Japanese yen.
Their acceptance of Japan's action is reminiscent of the Plaza Accord
in 1985, when other major economies acquiesced to depreciation in the US dollar which, like the yen recently, had become significantly overvalued.
22, 1985 -- Japan joins Britain, France, West Germany and the United States in the Plaza Accord
aimed at weakening the U.