initiated the “locomotive theory”, which posits that big economies pull along their smaller brethren. Carter’s theory asked for concessions from the smaller countries to benefit the U.S. for the high price the U.S. has incurred for their benevolence after the 1973-75 recession. The American initiative met with staunch German and Japanese resistance at first. In response, U.S. authorities let it be known that they would allow the dollar to depreciate against the dissenting countries' currencies in the absence of macroeconomic stimuli. Eventually, Japanese prime minister Takeo Fukuda agreed to the U.S. stimulus request in late 1977. A year later at the Bonn Economic Summit in July 1978, German Chancellor Helmut Schmidt acceded to expansionary fiscal policy as a part of a package of mutual concessions. 1980–1985 There was a twenty-six percent appreciation of the dollar between 1980 and 1984 as the result of a combination of tight monetary policy during the 1980-82 period under Federal Reserve Chairman Paul Volcker and expansionary fiscal policy associated with Ronald Reagan's administration during the 1982-84 period. The combination of these events pushed up Long-term interest rates, which in turn attracted a capital inflow and appreciated the U.S. dollar. The 1981-84 Reagan administration had an explicit policy of "benign neglect" toward the foreign exchange market. Some U.S. trade partners expressed concerns over the magnitude of the dollar's appreciation, advocating for intervention in the foreign exchange market in order to dampen such moves. However, Secretary of the Treasury Donald Regan and other administration officials rejected these notions, arguing that a strong dollar was a vote of confidence in the U.S. economy. At the Versailles Summit of G-7 leaders in 1982, the U.S. agreed to the requests of other member nations to allow an expert study of the effectiveness of foreign exchange interventions. The eponymous "Jurgenson Report", named after its lead researcher Phillipe Jurgenson, was submitted to the 1983 Williamsburg Summit where the requesting nations were disappointed that the findings did not support their advice. Only slightly deterred, the Plaza Accords in 1985 occurred. (The Plaza Accords were an impetus for the G-7 Finance Ministers as the group of officials that had met in New York were the first officials for it.) However, the U.S. began “talking down” the dollar further in order to encourage stimuli to domestic demand in Japan and Germany. 1990s In 1992, following a recession with a slow recovery and a delayed response