Louvre Accord
1987.02.22
Major economies agreed on policy coordination to reduce trade imbalances and stabilize exchange rates.
Date of the G6 joint statement. Germany refers to West Germany at the time.
Conditions at the time
Large trade imbalances remained even after adjustments in major-currency exchange rates.
How events unfolded
Finance ministers and central-bank governors discussed economic-policy coordination and exchange-rate stability in Paris.
Stakeholders and impacts
Surplus and deficit countries committed to different domestic-policy roles.
Information available at the time
The joint statement warned against protectionism and emphasized the need for more balanced growth.
Findings confirmed later
The accord is an example of international cooperation addressing exchange-rate adjustment alongside domestic-demand policies.
Alternative interpretations and limitations
Do not interpret the statement’s objectives as permanent exchange-rate pegs or complete achievement of its targets.
Source-based context and interpretation
After substantial post-Plaza currency adjustment, the communique sought stability near existing levels rather than further large shifts. BOJ researchers subsequently recorded implementation of the announced discount-rate reduction. Their retrospective also identified the exchange-rate commitment as a constraint on subsequent monetary-policy management. ASSETCASTING interpretation: Reading Louvre as another push in Plaza's depreciation direction misses the change in objective. Rate and fiscal promises are distinct from realized medium-term rebalancing, and the agreement did not guarantee a fixed exchange rate.
Evidence coverage through 2001-02 · Sources checked 2026-10-14
Related events and periods1
- Disinflation and expanding financial-market connections
An event or period whose recorded start falls within this editorial interval. This does not establish that it caused or represents the characteristics of the era, nor guarantee that the entire period falls within the interval.
Historical events do not guarantee future recurrence or investment performance.