In a way, the aggressive accumulation of international reserves by EMEs all the way to late 2013 (Figure 6) is at least partially the other side of the coin to “competitive easing”. As a matter of fact we might as well call it “competitive reserve accumulation”.
Over the past year, the economy has made considerable progress: Aggregate income is growing rapidly, business investment has begun to recover, the stock market has rebounded, and interest rates and inflation remain very low. To be sure, there are uncertainties regarding the outlook.