ABSTRACT
A global crisis appears to be the intervening variable or the "when" of Group of Seven (G7) collective action. The literature on the collective provision of goods answers why the G7 endures as an institution despite sometimes irreconcilable differences among members. In contrast to the Versailles summit, the G7 members faced a crisis that threatened their economies as well as global stability in October 1987. The telephone accord exemplifies how G7 institutional mechanisms facilitate great power collaboration. Regular meetings develop personal relationships among the G7 colleagues. The rescue package for the 1994–1995 Mexican peso crisis, according to C. Fred Bergsten and C. Randall Henning, "again revealed the capacity of the G7 to contain international monetary crises". Global crises incited the G7 members to collaborate and act as a group hegemon. Even though there are seven CEOs in the boardroom, they can coordinate their efforts when necessary to produce reasonable outcomes.
