An Agenda for the Group of 7

This month, leaders from the G-7 will assemble in Genoa, with attention focused on the slowing global economy. They will likely commend America’s Federal Reserve for taking forceful action to fight this, and avoid mentioning its responsibility for the downturn. They will hint at expansionary action in Europe, but won’t tread on the European Central Bank’s toes. Japan will renew its commitment to structural reforms, and although these commitments will have more credibility than before, all the leaders will slide over the fact that the short run consequences of these reforms, especially if done quickly and forcefully, may be negative.