Many important emerging market economies either do not have any monetary policy at all, because they have pegged their exchange rate to the currency of an advanced economy, or impose capital controls and restrict the international use of their own currency. This creates monetary divergences that are much larger in scale than those we discussed today, with global repercussions.
Thus, rather than talking about “monetary wars”, which makes little sense, more attention should be devoted to what I would call a “monetary void” in the world economy.