We tried to get round the obstructions facing the standard transmission mechanism by following a new route, the liquidity channel. (See slide 13). It worked by being a confidence-boosting measure: enough central bank liquidity would be forthcoming in case market liquidity dried up.
It is often pointed out that the exceptionally low interest rates and injection of ample liquidity using nonstandard measures in developed countries have contributed to the generation of volatile capital flows and exchange rates and amplified the boom-bust cycle in emerging economies.