Whether foreign demand is ultimately boosted or diminished by U.S. monetary policy depends on the relative sizes of these two effects and is ultimately an empirical question.
19 However, given the moderate exchange rate effects that we believe the Federal Reserve’s asset purchases  18  For the purposes of this discussion, the EMEs comprise Argentina, Brazil, Chile, China, Colombia, Hong Kong, India, Indonesia, Malaysia, Mexico, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Venezuela.