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The currency exchange rates no longer were governments' principal means of administering monetary policy. Under the floating rate system, during the 1970s, the dollar plunged by a third. Further, the Nixon shock unleashed enormous speculation against the dollar. The German Mark appreciated significantly after it was allowed to float in May 1971.
The Plaza Accord was a joint agreement signed on September 22, 1985, at the Plaza Hotel in New York City, between France, West Germany, Japan, the United Kingdom, and the United States, to depreciate the U.S. dollar in relation to the French franc, the German Deutsche Mark, the Japanese yen and the British pound sterling by intervening in currency markets.
The dollar price in the gold free market continued to cause pressure on its official rate; and soon after a 10% devaluation was announced on 14 February 1973, Japan and the OEEC countries decided to let their currencies float. A decade later, all industrialized states had done the same. [4] [5] [6]
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The crash came after the collapse of the Bretton Woods system over the previous two years, with the associated 'Nixon Shock' and United States dollar devaluation under the Smithsonian Agreement. It was compounded by the outbreak of the 1973 oil crisis in October of that year. It was a major event of the 1970s recession.
Investors widely expect the Fed to cut rates by a quarter point, although officials could signal plans to slow the pace of cuts in 2025. Despite the recent losses, the blue chips are up by 16% so ...
On Jan. 17, 1994, at 4:31 a.m., a violent shudder tore through Southern California. The Northridge earthquake, with a magnitude of 6.7, killed about 60 people and damaged or destroyed more than ...
The Administration made drastic changes in international finance with its 1971 New Economic Policy and again with a second devaluation of the United States dollar in February 1973. The result was the end of fixed exchange rates that set the value of the dollar in terms of gold; it had been well established since Bretton Woods in 1944.