Emerging market currencies have generally appreciated, as have the currencies of commodity-exporting nations. So things have calmed down somewhat. That said, I think most observers and policymakers tend to the view that while some recovery is welcome, the relative ‘calm’ seems a little eerie – perhaps fragile. Certainly, these events have posed a few questions for policymakers, at least for the present speaker.
Among the questions being considered over recent weeks were the following: •  Does the “turbulence” simply reflect the same information that is embodied in the softer global growth forecasts that have been emerging over this period? In other words is it just a noisier version of a signal that is already being received?