The stronger U.S. economy should directly benefit our foreign trading partners by raising the demand for their exports, and perhaps also indirectly, by boosting confidence  19  See Draghi and Constâncio (2013) and Bank of England (2013). The success of forward guidance, of course, depends crucially on the ability of policymakers to make informative statements about their intentions without a formal commitment device.
20  Powell (2013) notes that EMEs with larger current account deficits experienced both greater depreciations of their currencies and larger increases in their bond yields in mid-2013, suggesting that, while a reassessment of U.S. monetary policy may have triggered the retrenchment from EME assets, investor concerns about underlying vulnerabilities appear to have amplified the reactions. 6  BIS central bankers’ speeches  globally.