United Western Front

For newspaper editors who believe that governments can wave a wand and stop a global financial panic, the weekend effort by the G-7 finance ministers will be a disappointment. For everyone else, it should be considered progress.

AP

President Bush in the Rose Garden after meeting with G7 finance ministers.

The causes of the Great Depression are a source of historical dispute, but most economists agree that its depth and persistence were amplified by the lack of international cooperation. Nations acted in what they thought was their own self-interest but often in ways that harmed others. This was the era that gave rise to the phrase "beggar-thy-neighbor," with competitive currency devaluations and other protectionism.

So it was welcome to see the ministers lined up behind President Bush on Saturday in what amounted to a united front. "As our nations carry out this plan, we must make sure the actions of one do not contradict or undermine the actions of another," Mr. Bush said. "In an interconnected world, no nation will gain by driving down the fortunes of another."

The ministers laid out five principles that the governments can implement individually, albeit in coordinated fashion. Europe got started on the effort Sunday by agreeing to specific steps, such as injecting public capital into banks under siege to prevent domino-like failures. The skill with which this is carried out will matter a lot, but investors should be pleased that the West's political leaders are showing a common purpose.

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