There was significant spillover effects on global financial markets in particular as they related to a sharp decline in portfolio inflows into Latin America and the Mexican crisis ensued. In contrast, the Fed’s exit in 2004 had a much more muted impact on global markets. Nonetheless, markets reacted quite differently in the two episodes….what was the difference?
And that information is very helpful to us as we make our policy decisions. So this is a valuable exercise for us. And an enjoyable one as well, so we truly do appreciate it on a number of levels. The Reserve Banks are also continuing to host conversations in communities across the country to help capture economic realities on the ground.