1 Was the Plaza Agreement of 1985 a success?

Answer 1

The Plaza Agreement of 1985 is generally considered a success in its primary objective of depreciating the U.S. dollar to address trade imbalances. By coordinating interventions in currency markets, the agreement helped to reduce the dollar's value against other currencies, boosting U.S. exports. However, it also led to some unintended consequences, such as increased volatility in currency markets and contributing to asset bubbles in Japan and other countries. Overall, while it achieved its immediate goals, its long-term effects were mixed.