How will QE in Japan and the euro-zone affect EMs?

The Bank of Japan’s decision to boost asset purchases just as the ECB edges towards QE has rekindled concerns about negative spillovers from developed world monetary policy to the emerging world. The evidence that QE fuels global capital flows is weaker than generally thought. EM currencies will be affected. But, for most EMs, the alternative of weaker growth in Japan and Europe would be worse. 

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