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
Williamsburg Summit
9th G7 summit
Strong dollar policy