• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

The G7

“G7” stands for “Group of 7,” a club of the world's richest economies. The members are the U.S., Great Britain, Canada, France, Germany, Italy, and Japan. (It has also been called the “G8” to include Russia after the fall of the Soviet Union.) The organization first met in 1973 as the “G5,” prompted by the collapse of the Bretton Woods Agreement, the first oil shocks, and a world recession.

Today, the world leaders of the G7 meet at least once a year, with lesser meetings of lower-echelon ministers occurring between the yearly meetings. For the most part, a G7 meeting provides photo opportunities of grinning world leaders and colorful flags sharing the same stage. That is usually about all that happens. Occasionally, however, the G7 acts together to influence currency levels, as they did in the mid-1980s. Emergency meetings of the G7, which usually are leaked to the press, are good indicators that some important action is being considered. A G7 meeting is also a good snapshot of the world's economic mood. In 1997, the G7 met in Denver, Colorado, where the U.S. economy was starting to roar ahead on the gains of the Internet boom. In a jovial mood, U.S. President Bill Clinton presented the other world leaders with cowboy boots. The other world leaders, who were leading struggling economies, were not amused. French President Jacques Chirac refused to try his on. At another meeting, in 2003, Europeans urged the U.S. to help boost the dollar, which had lost significant ground against the euro and was making Europe's exports more expensive in world markets. U.S. officials, however, publicly indicated that the dollar's level was fine, and the G7 meeting ended with no resolution on the disparity.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint