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G-7 Economic Cooperation in the Trump Era

Jeromin Zettelmeyer (), Edwin Truman and C. Fred Bergsten

No PB17-15, Policy Briefs from Peterson Institute for International Economics

Abstract: This paper examines how G-7 cooperation can be maintained in the Trump era. Its working assumption is that the US administration will remain open to international cooperation in principle and yet be constrained by Trump’s economic nationalism and specific campaign promises, such as reducing trade imbalances. The main finding is that useful areas for G-7 macroeconomic, trade, and financial cooperation continue to exist even after taking US constraints into account. At the same time, leaders of the other countries need to be prepared to proceed on their own if attempts to convince the US administration that G-7 economic cooperation is in the interests of all members fail. This paper is a slightly revised and updated version of a paper presented at a conference on "Major Challenges for Global Macroeconomic Stability: The Role of the G7" organized by the Istituto Affari Internazionali (IAI) in Rome, Italy on March 27–28, 2017.

Date: 2017-05
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