Unconventional Central Bank Measures for Emerging Economies
IMF Working Papers, October 1, 2009
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Bibliographic details
- Authors: Mark R. Stone, Etienne B Yehoue, Kotaro Ishi
- Published: October 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451873733.001
Summary and core finding
- Unconventional central bank measures are playing a key policy role for many advanced economies in the 2007-09 global crisis.
- For emerging economies, unconventional measures have been used differently: "Emerging economies have widely used unconventional foreign exchange and domestic short-term liquidity easing measures."
- "Their use of credit easing and quantitative easing measures has been much more limited."
- Conclusion: "Thus, unconventional measures are much less important for emerging economies compared to advanced economies in achieving broader macroeconomic objectives."
Patterns of use by measure
- Foreign exchange measures: widely used by emerging economies (phrase preserved as in source).
- Domestic short-term liquidity easing measures: widely used by emerging economies (phrase preserved).
- Credit easing measures: use has been "much more limited."
- Quantitative easing measures: use has been "much more limited."
Explanations for differences with advanced economies
- The difference "can be attributed to the relatively limited financial stress in emerging economies, their external vulnerabilities and their limited scope for quasifiscal activities."