EFTA Document EFTA01458289

1 September 2015 Special Report: The 'Great Accumulation' Is Over: FX Reserves Have Peaked. Beware O7 remain more accommodative than feared. The less constructive view is that the Fed balance sheet simply matters far more for EM, with liquidity provided by the ECB and BoJ a poor compensation for the Fed's retrenchment. Indeed, Figure 16 suggests this to be the case, with EM flows tracking the fall in Fed balance sheet growth closely of late. The hawkish scenario of Fed stopping reinvestmen