Firstly, one tool through which developed economies are fostering economic improvement is by restoring competitiveness, be it via cost and price disinflation (as in the case of the euro zone’s periphery) or by allowing currency depreciation (like in Japan).
Secondly, a difference between the current situation and the early 2000s – when the recovery saw emerging market growth outpace global benchmarks – is that the real effective exchange rates of emerging market currencies are not, on balance, as depreciated as they were at the time.