It is very likely that we get a new Plaza Accord. Not now, but the dollar's strength is going to be absolutely ruinous for corporate America over the next 12 mo

It is very likely that we get a new Plaza Accord. Not now, but the dollar's strength is going to be absolutely ruinous for corporate America over the next 12 months. And, at that point, you will see a move towards monetary co-operation (the thing that Obsfeld is talking about). I do agree though: suggesting that the Fed stop rate hikes today because of the international consequences is madness. We are getting a much needed rebalancing, the Fed is kind of exporting deflation but this is being made up for with exchange rates moving downwards, the Fed's low rates during the last decade have heavily distorted international markets, continuing isn't helpful.