As Keynes famously observed, "you can't push on a string" -quantitative easing is more likely to generate asset bubbles and currency turmoil than employment.

If a disproportionate amount of local currency is channeled into asset prices in a country, less currency is being spent on goods and services in the economy, causing consumer prices to fall.

The trilemma of international economics dictates it: if capital is mobile, currency rigidity will eventually lead to asset bubbles and inflation.