The exact magnitude of different channels, and most notably the FX stock channel can vary from time to time, depending on the level of the exchange rate.
Furthermore, there can be serious nonlinearities in the MTM mechanism depending on the levels of the risk premium, exchange rate, and hence banking sector resilience: the higher the risk premium, the weaker the exchange rate and the banking sector’s capital base, the more likely, we will enter in a situation, where monetary loosening has recessionary effects, when the banking sector cuts back lending seriously, this situation might hinder financial stability.