Effects of QQE  Transmission mechanism of QQE The Bank, in introducing QQE two years ago, envisioned the following transmission mechanism of QQE as a main channel (Chart 1).
Several transmission mechanisms have acted adversely over the last semester: financial intermediaries overly exposed to maturity/currency risks have curtailed lending; heightened risk aversion has massively reduced capital flows into emerging economies; export revenues have fallen as a result of declining trade volumes and commodity prices; remittances – normally a countercyclical factor in poor countries – seem to show a reversal in their multiyear upward trend.