The impact and outcomes of these recent actions of monetary authorities still appear unclear, for the immediate future on the financial markets and for the longer term on the real economy in terms of growth rate as well as price stability.
In the meantime, the equity markets in most economies are buoyant but are far more volatile over longer periods than in the recent past. There is a widespread concern among several central banks in emerging market economies about the added pressures on monetary management due to the prevailing extraordinarily strong and volatile cross-border capital flows.