3  “Graduation from monetary policy procyclicality”, Vegh,c and Vuletin,G, 22 August 2012. 4  US, euro area, Japan, China, UK. 2  BIS central bankers’ speeches  The arrival of QE brought much scepticism and unease, with talk of currency wars gaining momentum owing to the spill-over effects of such easy monetary policy on emerging markets.
In particular, QE led to increased liquidity globally; amplified carry trade activity owing to favourable spreads; the financialisation and resultant boom in commodity prices; volatility in financial markets, in particular exchange rates; and robust capital inflows into bond and equity markets.