Even though last night's G7 Yen intervention still has no name, it likely will very shortly. After all, key previous global currency interventions have received names according to where they took place, notable ones being the Plaza Accord from 1985 which took place in the Plaza hotel in New York in 1985, which was supposed to depreciate the dollar against the Yen (in essence the opposite of what happened last night), and the Louvre Accord from 1987 which was the aftermath of the of what happened last night), and the Louvre Accord from 1987 which was the aftermath of the Plaza accord which worked so well two year later the central powers met again to halt the ongoing dollar depreciation (primarily against the Yen and the Mark). So how successful have these operations been historically? Well, when it comes to killing the dollar (Plaza) the success rate was stunning. So stunning in fact that as noted, another accord had to be implemented to halt the $ decline. That one did not work out so well: in fact following the Louvre Accord the dollar continued its depreciation (primarily against the Yen and the Mark). So how successful have these operations been historically? Well, when it comes to killing the dollar (Plaza) the success rate was stunning. So stunning in fact that as noted, another accord had to be implemented to halt the $ decline. That one did not work out so well: in fact following the Louvre Accord the dollar continued to decline for another 2 years! So if last night's attempt to strengthen the dollar (weaken the yen) is to be judged by historical precedent, the half life of the G7 intervention may be extremely short ived.
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