David Adler, City Journal
We seemed better able to manage these problems in the past. The 1985 Plaza Accords, for example, which involved the five largest industrial countries, represented a coordinated intervention undertaken by Ronald Reagan’s Treasury secretary James Baker to weaken the overvalued dollar. The accords dramatically lowered the value of the dollar by 40 percent, and ultimately reduced the American trade deficit with Japan. The United States is a more distractible country today, though, less pragmatic and hard-headed than it was in 1985. We have been mostly asleep when it comes to understanding…
Source: Real Clear Politics
