As the modern literature on the Great Depression demonstrates, these policies confer net benefits on the world economy as a whole and should not be confused with zero- or negative-sum policies of trade diversion. In fact, the simultaneous use by several countries of accommodative policy can be mutually reinforcing to the benefit of all.
Let me end these remarks as I began, by paying tribute to Mervyn King. He has been a leader in the central banking community during an extraordinarily difficult period. I wish him the very best in the next stage of his career. 8  Other work also supports the finding of no adverse spillovers.