Hélène Rey (2013) also indicates that “A VAR analysis suggests that one of the determinants of the global financial cycle is monetary policy in the centre country, which affects leverage of global banks, capital flows and credit growth in the international financial system.” 19 To sum up, there are some good points against the view that the “savings glut” or “safe assets shortage” theory, while useful in understanding key aspects of the present global economy framework, contain all the truth.
In particular, they fail to fully capture the responsibilities of monetary policy of the major central banks. But they also fail to capture their possibilities.