Those of you who attended the G20 discussions in 2011 will remember the animated exchanges on this issue. If anything, this confirmed that, for any meaningful discussion of international monetary reform to take place, one needs to better understand the driving factors of global liquidity and its impact on domestic policies.
The emerging market participants argue though that unconventional measures taken in developed economies have created excessive global liquidity and that this, in turn, was a key factor behind the massive increase of capital flows into their economies between 2009 and mid-2011.