Four decades ago, the swanky Plaza Hotel in New York became famous in finance lore. On September 22 1985, the US government persuaded Britain, Japan, Germany and France to jointly devalue the dollar, to boost America’s industrial competitiveness.
Could this happen again? The idea is sparking endless gossip among financiers. Or as the Aberdeen investment group recently told clients: “There has been speculation about a new Plaza Accord — dubbed the ‘Mar-a-Lago Accord’ — to depreciate the US dollar.” Indeed, some traders expect it this year.
Ah, the “Plaza Accords”. Who can forget? Certainly not me!
While backpacking in Europe – post graduation – and living on fixed funds, the Accord occurred mid journey and put a substantial dent in my budget for the remaining 5 weeks dealing with marks, franks and so on….
Chastened, a few years later I attend a Galbraith lecture. I asked him what an individual could do about such events? He replied “nothing”, there is nothing you can do about it, so don’t bother yourself with such concerns….
And, so it remains.