Greater flexibility in the exchange rates of major emerging economies is in this respect a fundamental precondition for a stable international monetary system. At the same time, macroeconomic policies should avoid the externalisation of domestic imbalances to the global economy.
How long would the program continue, and what would be the ultimate size? Would purchases of long-term assets continue until the unemployment rate is 9 percent or 8 percent or even less? Would purchases continue until inflation rises to 2 percent or 3 percent or more?