4  private sector, but a “sudden stop” or exodus of these flows in future can trigger a collapse of the exchange rate with adverse economy-wide spillovers; and, (iv)  Sweeping bank loan losses under the rug by compromising supervisory and regulatory standards can create a façade of financial stability in the short run, but inevitably cause the fragile deck of cards to fall in a heap at some point in future, likely with a greater taxpayer bill and loss of potential output.
According to this view, the Bank should enhance the effects of quantitative easing not merely by increasing quantity but also by introducing qualitative improvement of quantitative easing measures through the purchase of other types of assets.