This observation implies that central bank communications pertaining to any important feature of the path of the Federal Reserve’s balance sheet should influence financial conditions. Event studies can therefore be helpful in gauging the financial market effects of such communications. 4 For example, table 1 reports the response of selected financial variables on several key dates associated with the FOMC’s purchases of longer-term securities.
Let me remind you that development of Asian economies has been made possible by its free access to the global market place, in particular US markets. This is evident not only by recent history of emerging economies but also by the history of Japan hundred years ago.