In our work, we have argued that the dollar is having its third significant rally since the end of Bretton Woods. The first rally was associated with Reagan though it began under Carter and followed 100 bp hike by a new Federal Reserve Chairman (Volcker). On a real broad trade-weighted basis, the dollar appreciated by more than 50% over the seven years and in 1985, the G7 met at the Plaza Hotel in NY and agreed to coordinate intervention to drive the dollar down. Before last month's G20 meeting, some had talked about the possibility of another Plaza-like agreement. We downplayed such suggestions. There was no ... (full story)