US Fed is the Most Powerful Liquidity Driver, comparing to China, Euro, and Japan

the US is by far the most significant global liquidity driver. 

For every USD 10bn increase in US M1 there is a USD 24.4bn increase in global M2. 

For China, the impact on global M2 is USD 6.9bn for every USD 10bn equivalent of extra M1 created; 

The corresponding numbers for the euro area and Japan are USD 18bn and USD 12.3bn, respectively. 

Therefore, if USD 85bn of monthly asset purchases from the Fed were to stop, compensation by other central banks would require the Chinese authorities to expand their balance sheet by USD 298bn or the European Central Bank (ECB) to expand by an additional USD 115bn, other things being equal.