Aug
18

Delightful Divergence

monetary policyWhile the Bank of Japan is engaging in expansionary monetary policy and the ECB probably will in early 2015, the Bank of England will likely raise rates by 4/15 with the Fed following soon thereafter. While this monetary policy divergence reduces global growth, it keeps commodity inflation down and reduces the chances of a massive global recession as it dramatically decreases the likelihood of every economy sinking simultaneously.

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