In this lecture, I would like to emphasize both aspects of our global connectedness – spillovers from the United States to foreign economies and the effect of foreign economies on the United States. I will first review the effect of the Fed’s monetary policies on the rest of the global economy, particularly the EMEs, which has received considerable attention in recent years.
4/6  BIS central bankers' speeches  But the announcement of asset purchases put the euro under massive pressure in 2014…. … after it had risen sharply prior to that. This was a correction of a previous overvaluation. Seen overall, the euro area has generated a trade surplus over recent years. That would normally strengthen the euro in the long run.