In a rare move, the European Central Bank is widely expected to begin cutting its policy rate this week,

at the same time that the Fed is expected to remain on hold at its upcoming meeting.

So how far could Central Bank divergence run?

The US is a huge impact on the global financial cycle,

but the US is not independent also of what the others are doing.

So there are spillovers in financial conditions to the other countries,

but they also spill backs.

I'm Allison Nathan and this is Goldman Sachs exchanges.

Every month I speak with investors, policymakers and academics about the most pressing market moving issues for our top of my report from Goldman Sachs research.

In the most recent report, I looked at Central Bank Divergence.

The Fed typically leads a relatively synchronized monetary policy cycle

across the major economies.

But the cycle seems to be shaping up somewhat differently this time.

So why is that and what are the implications for economies

and markets? I spoke to three of the world's top economic minds.

Jan Hatzius, our chief global economist here at Goldman Sachs, Peter Pratt, the

former chief economist of the European Central Bank,

and Maurice Oppsfeld, the former chief economist of the IMF.

Jan started us off with a useful snapshot of how economies around the world are faring and how

Central Banks are responding. How unusual is it for the Fed to not lead the cycle and

what's really informing our view in terms of the starting points.

The idea of having flexible exchange rates and

...