Forced dollar devaluation did not resolve imbalances, Gita Gopinath notes

Forced dollar devaluation did not resolve imbalances, Gita Gopinath notes
Plaza Accord did not fix imbalances

Gita Gopinath, first deputy managing director at IMF, highlights an analysis by Takeo Hoshi on the Plaza Accord. Gopinath notes that, according to Hoshi, the forced devaluation of the dollar was not what ultimately addressed economic imbalances.

Gita Gopinath has previously addressed disagreements between G7 economists and IMF reports on the topic of global imbalances, citing analysis from Brad Setser in a recent article. She has also analyzed India's foreign exchange reserves, emphasizing that only the RBI can deplete reserves to support the rupee in a separate report. These issues remain central to ongoing policy debates.

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