What Matters for the Rest of the World Will Matter for the Fed, Says Professor Forbes

The video discusses the concept of monetary policy divergence, focusing on how different countries adjust their policies based on domestic needs despite global influences. It highlights the challenges faced by the Bank of England in maintaining a divergent policy and explores the implications of currency wars. The video also examines capital flows to emerging markets and the risks posed by trade wars, emphasizing the interconnectedness of global economies and the impact on domestic monetary policies.

What role do capital flows play in the challenges faced by emerging markets?

What are the potential risks associated with increased borrowing in dollars for emerging markets?

How can trade wars impact investment and productivity growth in the context of monetary policy?