The Effects of U.S. Unconventional Monetary Policy on Asia Frontier Developing Economies

Author/Editor:

Sohrab Rafiq

Publication Date:

January 23, 2015

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper explores the effect of U.S. unconventional monetary policy (QE2) on a group of frontier developing economies (FDEs) in Asia. This paper finds that spillovers emanating from the U.S. on FDEs in Asia have been small. The relative insulation of emerging Asia from the global financial cycle can likely be attributed to the presence of managed capital accounts coupled with shallow financial markets. Should U.S. monetary policy begin to normalize the direct first-round impact on developing Asia is likely to be small.

Series:

Working Paper No. 2015/018

Subject:

Balance of payments Capital flows Current account balance Financial services Monetary policy Short term interest rates Unconventional monetary policies Yield curve

English

Publication Date:

January 23, 2015

ISBN/ISSN:

9781498334037/1018-5941

Stock No:

WPIEA2015018

Pages:

30

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