In 1985, an agreement was hatched at New York's Plaza Hotel between the governments of France, West Germany, Japan, United Kingdom, and the United States to depreciate the value of the USD in order to address global imbalances. Two years later, the Plaza Accord was a success allowing the USD to fall by 50% against the Yen and D-mark. Today the G5 is no more, having been replaced by the G20. With each country trying to grab a bigger share of of global trade at others’ expense, isn't protectionism right around the corner. I just don't see how 20 countries will agree to do what needs to be done in order to fix the global imbalances.
Read the whole article in the Economist here.
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