A second part of the monetary transmission mechanism that looks a little different is the flowon from economic activity to inflation. While the evidence here is less clear cut, looking around the world it seems probable that both workers and firms perceive that their pricing power has declined.
A third significant development from the perspective of EMDEs is the greatly improved circumstances in which these countries find themselves, in terms of their size and resilience. The impressive fiscal, financial and structural reforms that many of them have undertaken will put these economies in a far better position than they were 30, 20, or even 10 years ago.