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July 1978

Coordinated International Economic Expansion: Are Convoys or Locomotives the Answer?

by Geoffrey E. Wood and Nancy Jianakoplos

American diplomats have been pressuring the other “locomotive” countries—West Germany and Japan—to take steps to reflate their economies. This would have the effect of creating more consumer demand and therefore more world trade. Such an “export” of the American recovery would also, incidentally, serve to bring down un- employment in the United States.