The aim of this paper is to assess the surge in financial flows to developing and emerging market economies induced by the Federal Reserve's experience of quantitative easing. Using both panel causality tests and dynamic panel regression models on a data set covering as much as 78 developing and EMEs between 2007Q1 and 2014Q4, it is found on the one hand that QE caused cross-border capital flows in the form of foreign direct investment, an equity portfolios, and bank loans. On the other hand, the study reveals that QE significantly fueled financial flows to developing and EMEs through the portfolio rebalancing, liquidity and confidence channels. In addition, the paper highlights the significant contribution of the fiscal channel and shows that when it comes to post-QE cross-border financial flows, the BRICS exhibit a pattern similar to that of other developing and EMEs.

This article aims at assessing the effects of the Federal Reserve’s quantitative easing (QE) programmes on both economic activity and prices in the United States. Using a structural vector autoregression (SVAR) model on monthly data from January 2007 to March 2017, it is assumed that a substantial fraction of the liquidity injected under the Federal Reserve’s quantitative easing programmes was used to artificially inflate stock prices. Furthermore, QE is assumed to be a competitive devaluation programme. The findings reveal that QE helps support economic activity, while its effect on inflation is rather small and insignificant. Besides, it is also found that QE boosts stock prices but does not have a significant effect on the US dollar.

Today the world economic power is shifting from the West to the East. Some emerging economies are pulling the economic activities in the world more than ever. These countries are sometimes referred as E7, or 7 emerging economies. They are Brazil, China, India, Indonesia, Mexico, The Russian Federation and Turkey in alphabetical order. This paper analyzes the sources of the economic growth in these countries. In the model the exogeneous factors relating to economic growth are selected as exports and FDI. The endogeneous factors would be reflected in the employment rate. It is found out that most of these countries are growing by exporting. Therefore, it is concluded that the export-led growth paradigm is a viable economic growth model even today. The correlation between economic growth and FDI gives unexpected results. In all emerging economies, economic growth and FDI are negatively correlating, except in Russian Federation and in Turkey there is no correlation between the two variables. In China, economic growth correlates negatively with unemployment suggesting that endogeneous factors play an important role in Chinese economic growth.