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Economics of War

lateral approach that demonstrates that the authorities of the leading countries are ready to couple their military alliance with effective economic collaboration.Such cooperation can best be displayed through highly visible international meetings. The most obvious is the session of the finance ministers and central bank governors of the Group of Seven industrial countries (US, Japan, Germany, France, UK, Italy and Canada) on October 6 than can announce the economic component of the war strategy. It is unfortunate that the annual conclave of the International Monetary Fund that was scheduled for September 29-30 was cancelled, as it could have been used to broaden and reinforce support for the multilateral strategy.The community of nations can also display unity in responding to the destruction of the World Trade Center by moving forward together on world trade. The ministerial meeting of the World Trade Organization in November should proceed as scheduled, especially as it is to be held in Qatar on the Persian Gulf. The quibbles that have raised doubts about the participants' ability to launch a new round of multilateral negotiations should be set aside in light of the new circumstances, just as the Cold War allies traditionally overcame their petty trade disputes in the face of overriding security imperatives. The similar quibbles that have kept the Congress from enabling our own President to participate in such negotiations since 1994, let alone lead them, should also be set aside with early passage of Trade Promotion Authority if we want to convince the world that we are serious about responding effectively to the events of September 11.The economic dimension of the terrorist attacks has naturally been overshadowed during these first few days by the human tragedy and by the quest to restore a secure America. As life returns toward normal, however, the everyday concerns of jobs and business will resume their traditional primacy for mo...

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