Delightful Divergence
08/18/2014 | | econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, MLS, Monetary Policy, mortgage banking, Multiple listing service, politics and economics, Public speaking economist, www.econ70.com
While 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.