The increase in government bond yields in the U.S.A. since early 2013 and the Fed’s indication of May 2013 that it may taper its unconventional monetary policy have correlated with sizable capital outflows and currency depreciation in emerging markets; this points to pronounced global macro-financial interdependencies.
It needs to be recalled that central bankers have time and again raised their voices to warn on fragilities and underpricing of risks, but they could not turn a tide of opinion. And some of us have pointed to excessive growth in money and credit, which others considered quite out of step with the tune of the time.