Plaza Accord
The signing of the Plaza Accord was significant in that it reflected Japan's emergence as a real player in managing the international monetary system. However, the recessionary effects of the strengthened yen in Japan's economy created an incentive for the expansionary monetary policies that led to the Japanese asset price bubble of the late 1980s. Some commentators blame the Plaza Accord for the Japanese asset price bubble, which progressed into a protracted period of deflation and low growth in Japan known as the Lost Decade, which has effects still heavily felt in modern Japan. Jeffrey Frankel disagrees on the timing, pointing out that between the 1985-86 years of appreciation of the yen and the 1990s recession, came the bubble years of 1987-89 when the exchange rate no longer pushed the yen up. The rising Deutsche Mark also didn't lead to an economic bubble or a recession in Germany.