Asset prices are inherently volatile, in part because expected returns from real assets can vary for a wide variety of reasons, some of which may be only tangentially related to the state of the economy and monetary policy.
This brings us to the “currency war” criticism of monetary policy. [24] Those taking this line argue that currency depreciation caused by unconventional policy easing can divert domestic expenditure away from foreign imports, thus creating a zero-sum game. Clearly such arguments need qualifying.