Political economists have gradually begun to question the assumption that globalization and international capital mobility are forcing a convergence of international monetary policies. Monetary Divergence analyzes fiscal, monetary and exchange rate policy, demonstrating why the convergence thesis is overstated and misleading, and explaining how the evidence actually contradicts it. This important new book explains partisan economic differences in the capitalist global economy, and offers a novel explanation for the observed gap between governments' exchange rates.

"In a meticulously researched study, David Bearce demonstrates that, contrary to predictions, financial globalization has not resulted in a systematic convergence of national monetary policies. The book is a must-read for students of the political economy of international finance. Highlighting the critical role of partisan politics in determining policy outcomes, Bearce adds a new and important dimension to our understanding of the impacts of international capital mobility in the contemporary era."

—Benjamin Jerry Cohen, Louis G. Lancaster Professor of International Political Economy, University of California, Santa Barbara