The major economies have tended to follow similar cycles, but now economists are talking about the "Great Divergence". The market expects the ECB to keep rates on hold while the Fed starts hiking, and the divergence could persist for years. Does this have parallels with the divergence between the US and Japan in the 1990s?
About the authors
Economist Insights is written by Joshua McCallum and Gianluca Moretti. Joshua has been working at Global Asset Management with the title of Senior Fixed Income Economist since 2005. Prior to this, he worked at the UK Treasury as a macroeconomist. Gianluca joined Global Asset Management in 2010. Prior to this he worked at the Italian central bank.
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