The purpose of my project is to complete a book that analyzes the changes in the international political economy since 1985 and evaluates their implications for national policies and the international norms and institutions governing economic relations among the three dominant powers: Japan, Western Europe, and the United States. I use the term "political economy" rather than "international economy" because my fundamental premise is that political factors will be even more important in the future than they have been in the past in determining the nature and norms of the world economy. The political ambitions of the major economic powers and the international political system create, at least over the short term, the larger framework within economic and markets forces must function. The research project, therefore, analyzes the interaction of economic affairs and political factors and their implications for international affairs.