EMEs and others who are affected by the exits, in many cases, will also find it does not meet their immediate needs. To some extent, however, the lack of synchronicity may be helpful, allowing for some offset, so everyone is not moving in the same direction at once. 30.
History does have examples of past exits from accommodative monetary policy which could be instructive to review. After the 1990–91 crisis, the Fed hiked rates in February 1994. The hike was largely unanticipated by markets, policy rates were raised sharply within a relatively short span of time.