ABSTRACT
This chapter examines Group of Seven (G7) collective discourse on macroeconomic conditions, priorities and challenges as expressed through G7 statements. It discusses the G7 process’s relationship with the act of monetary union in Europe, which has irrevocably changed monetary and fiscal politics in three of the Group of Seven’s members. The key for future world macroeconomic governance will be how the inevitable conflicts and tensions that arise between the tighter control of public expenditure and the targeting of poverty will be managed. Declaratory policy involves the release of collective public statements that present a particular interpretation of exchange rate patterns to the market. The Clinton administration adopted the position that EMU was a positive development and that a strong euro would be good for Europe, good for the world economy and therefore good for the US.
