In 1984, with the election of the Fourth Labour government, Deane led those elements within the Reserve Bank calling for a devaluation of the New Zealand dollar. Speculation on international markets that the incoming New Zealand government would devalue the currency led to the Reserve Bank needing to defend the fixed currency in the markets, causing losses of hundreds of millions of dollars. The defeated Prime Minister, Muldoon, refused to devalue the currency; a constitutional crisis ensued, during which the incoming Government directed Muldoon to devalue. During the crisis, Deane took the unprecedented step of closing the New Zealand currency to international trading pending settlement of the dispute.