This is particularly likely to be the case for a smaller country, where the size of the capital inflows it attracts may be large relative to the size of its economy, even if the capital flows are small for the large country that is easing its policy.9 So while it may be the case that the monetary  7  For those who are interested, these transactions are evident in a couple of statistical tables on the RBA website.
In table A4, the RBA’s transactions in foreign exchange markets are recorded. The first column shows the Bank’s dealings with the market, the second, our transactions with the government, and the third, our dealings with other customers, as well as the interest earned on the reserves. The net of all these three columns are the Bank’s additions to its outright foreign reserve holdings.