However, a couple of caveats are worth noting. First, this methodology may only provide a lower bound on the welfare costs of an LSAP, as it is plausible that not just Treasury securities, but also agency securities and perhaps highly rated corporate bonds, also have some degree of money-ness to them in terms of being useful in satisfying safe-haven demands.
Looking further within a subset of small open economies, Ireland is less negatively affected than Singapore or Sweden, but more affected than Switzerland and New Zealand for example. Today, the responsiveness to the global economy is particularly relevant with weakening global growth prospects and subdued global final demand. *** Turning now to structural vulnerabilities.