Announcement the Ministers of Finance and Central Bank Governors of France, Germany, Japan, the United Kingdom, and the United States (Plaza Accord), September 22, 1985

Claims Supported by This Source

1. Paragraph 10: The United States has a large and growing current account deficit; Japan, and to a lesser extent Germany, have large and growing current account surpluses. These external imbalances are creating a risk of instability. Contributing factors include the continued appreciation of the US dollar.
2. Paragraph 11: The US current account deficit has generated protectionist pressures that, if not resisted, could lead to mutually destructive retaliation.
3. Paragraph 18: Exchange rates should play a role in adjusting external imbalances and should better reflect fundamental economic conditions. Some further orderly appreciation of the main non-dollar currencies against the dollar is desirable. They are ready to cooperate more closely to encourage this when it would be helpful.
4. Policy intentions of the Government of Japan: 1. Resisting protectionism and an action program for market opening. 2. Utilizing private sector vitality through deregulation. 3. Flexible management of monetary policy with due consideration to the yen exchange rate. 4. Strengthening the liberalization of financial markets and the yen. 5. Reconciling central government deficit reduction with a growth environment for the private sector. 6. Stimulating domestic demand through the expansion of consumer credit and the mortgage market.

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