Quantitative easing appears to have the desired effect that central banks hope for, but not negative interest rate policies.
To reduce volatility dependence within emerging Asian economies, policy makers should adopt capital flow management measures.
Under positive eurozone interest rates, monetary policy shocks trigger positive spillovers to industry, and house and stock prices in Asia.
The United States’ unconventional monetary policies have led to rapid capital inflows, strong currency appreciation, and asset price and credit booms in Asia and the Pacific.
Good governance and the right macroprudential measures play an important role in dealing with quantitative easing spillovers.