Can some one explain to me what is monetary policy divergence?

Discussion in 'Community Discussion' started by Bubble99, Jul 2, 2017.

  1. Bubble99 macrumors 6502

    Joined:
    Mar 15, 2015
    #1
    I know it has some thing to do with big banks but not sure what really is monetary policy divergence?

    They say monetary policy divergence can effect inflation, price of gold, money currency and prices and the economy. How so?
     
  2. Gregg2 macrumors 603

    Joined:
    May 22, 2008
    Location:
    Milwaukee, WI
    #2
    It's the counter-argument to the theory of monetary policy convergence - that economic conditions, i.e. globalization and international capital mobility are tending to force a convergence of monetary policy in world economies. MPD argues that MPC is overstated and misleading, and that the evidence really contradicts it.
     
  3. Bubble99 thread starter macrumors 6502

    Joined:
    Mar 15, 2015
    #3

    But how can monetary policy divergence effect gold, inflation and currency?
     

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