Louvre-accord meaning

A declaration made at the Louvre in Paris February 1987 by finance ministers and central bank governors of major industrial countries. The Louvre Accord resolved that the value of the dollar had fallen far enough and should be stabilized. In a public statement, these ministers and central bank governors declared that their currencies were roughly at the right levels and were within ranges broadly consistent with underlying economic fundamentals. They promised to cooperate closely to foster the continued stability of foreign exchange rates at the current levels. The signers of the Louvre Accord also agreed to a variety of economic initiatives, such as reducing budget deficits, stimulating demand, and enacting tax reform. The impact of the statement was short-lived, however, as market forces reasserted themselves.
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