How To Forex : How The Plaza Accord Affected Exchange Rates - Whenever a nation makes the mistake of overvaluing its currency, exchange rates start to become massively affected and this causes all kinds of trading problemshis is exactly what happened in the United States and it took the intervention of five of the world's biggest economic powers to solve the problemhe 1985 Plaza Accord was an every crucial event in modern monetarys as it was designed to devalue the US Dollar in terms of the yen (Japan) and the deutsche mark (West Germany)his all came about after a classic mistake from the United States Federal Reserve Systemn the economic world, if exchange rates of currencies become artificially high against others, they are considered to be overvalued and this in turn has the negative effect of making a country's foreign exports more expensive which naturally makes them less competitivehis is precisely what happened in the United States in the early 1980s when President Reagan introduced enormous tax cuts which expanded th ... [Read More - How To Forex]
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