A Comparative Analysis of the Economic Impacts of West Germany and Japan After the Plaza Accord
- DOI
- 10.2991/assehr.k.211020.129How to use a DOI?
- Keywords
- The Plaza Accord, Economic bubble, Fiscal Policy
- Abstract
The Plaza Accord has had significant meaning in the last century, no matter economically or historically. This paper analyzes why West Germany experienced more minor impacts due to the Plaza Accord compared with Japan and became one of the strongest economies at that time. The analysis on this problem through data is in terms of many aspects such as monetary, fiscal policies used by two countries, international trade conditions, and some other reasons. From my point of view, the use of expansionary monetary and fiscal policy, an unstable price level that caused money flows into stock and housing markets instead of manufacture industries might be the main reasons why Japan experienced severe economic impacts after this agreement. Also, fiscal and monetary policies used to keep a steady price level, government policies and strict supervision in the housing market, early vocational education, high investment in researches to increase the competitiveness of exported goods and services, and the exchange rate linkage mechanism in the European Community might be the main reasons why German economic recovered and rose rapidly after Plaza Accord compared with Japan economic.
- Copyright
- © 2021, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - CHING TAT TSE PY - 2021 DA - 2021/10/21 TI - A Comparative Analysis of the Economic Impacts of West Germany and Japan After the Plaza Accord BT - Proceedings of the 2021 International Conference on Public Relations and Social Sciences (ICPRSS 2021) PB - Atlantis Press SP - 54 EP - 57 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.211020.129 DO - 10.2991/assehr.k.211020.129 ID - TSE2021 ER -