Unconventional monetary policies including quantitative easing (QE) taken by many advanced economies have helped beef up their economic recovery momentum, but produced side effects on other nations, experts said here on Tuesday.

The large-scale asset purchase programs, or QE, of major advanced economies have caused spillover effects on emerging economies such as large capital flow that has put strong pressure on emerging markets' inflation and domestic asset prices, Luiz Awazu Pereira da Silva, Deputy Governor of the Central Bank of Brazil, said at a seminar hosted by the Washington-based Peterson Institute for International Economics (PIIE).

Against the background of abundant provision of liquidity, low interests rates and anemic growth prospects, the currencies of many advanced economies have weakened, which have "collateral effects" on emerging economies. The Group of Twenty (G20) should promote better cross-border regulation and foster policy coordination to create a more cooperative global economic environment, he contended.

Since the onset of the financial crisis, U.S. Federal Reserve has kept its short-term interest rate at the historically low level and completed two rounds of quantitative easing programs, known as QE1 and QE2. It is now purchasing longer-term government debt and mortgage-backed securities at a pace of 85 billion U.S. dollars per month, dubbed as the QE3, to stimulate its economic growth.

Unconventional monetary policies have bought some time for developed countries to revive their economic recovery, but is also taking the world into "uncharted territory," former World Bank President Robert Zoellick said at the event. Endi