This may indeed cause the increase in domestic competitiveness that could energize the sending country’s exports. But such increases in competitiveness and “demand shifting” can be very detrimental for global stability, especially if unaccompanied by domestic demand creation.
Spill overs to emerging markets and musical crises If UMP enhances financial risk taking in the originating country without enhancing domestic investment or consumption, the exchange rate impact of UMP may simply shift demand away from countries not engaging in UMP, without creating much compensating domestic demand for their goods.