{
  "title": "Effects of Emerging Market Asset Purchase Program Announcements on Financial Markets During the COVID-19 Pandemic",
  "publication": "IMF Working Papers, December 18, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2020/12/18/effects-of-emerging-market-asset-purchase-program-announcements-on-financial-markets-during-49967",
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  "summary": "The COVID-19 pandemic led many emerging market central banks to adopt, for the first time, unconventional policies in the form of asset purchase programs.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Asset purchase announcements by emerging market central banks during the COVID-19 pandemic:\n  - lowered bond yields.\n  - did not lead to a depreciation of domestic currencies.\n  - did not have much effect on equities.\n- The immediate effect of asset purchases appears positive, but the paper emphasizes the need for further consideration of risks and longer-term effects of unconventional monetary policies.\n- The study highlights trade-offs involved with implementation and discusses risks associated with asset purchase programs.\n- The working paper contributes to the debate on whether asset purchase programs should be a regular part of the emerging market policy toolkit."
    },
    {
      "heading": "Methodology",
      "content": "- The analysis uses both event studies and local projections methodology to assess effects on domestic financial markets."
    },
    {
      "heading": "Policy implications and risks",
      "content": "- While early outcomes suggest benefits (lower bond yields without currency depreciation or large equity impacts), policymakers should weigh:\n  - trade-offs involved in implementing asset purchase programs.\n  - longer-term risks and potential unintended consequences of unconventional monetary policies."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject: Bond yields, Central bank policy rate, Currencies, Stock markets, Yield curve\n- Keywords: asset purchase, asset purchase program, bonds, central banks, COVID-19, EM currency, EM equity, emerging markets., equities, foreign exchange, market dynamics, market volatility, pandemic, policy announcement, policy spillover, QE announcement, quantitative easing, WP\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2020/12/18/effects-of-emerging-market-asset-purchase-program-announcements-on-financial-markets-during-49967"
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    "Authors: Can Sever, Rohit Goel, Dimitris Drakopoulos, Evan Papageorgiou",
    "Published: December 18, 2020",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513564661.001",
    "Asset purchase announcements by emerging market central banks during the COVID-19 pandemic:",
    "The immediate effect of asset purchases appears positive, but the paper emphasizes the need for further consideration of risks and longer-term effects of unconventional monetary policies.",
    "The study highlights trade-offs involved with implementation and discusses risks associated with asset purchase programs.",
    "The working paper contributes to the debate on whether asset purchase programs should be a regular part of the emerging market policy toolkit.",
    "The analysis uses both event studies and local projections methodology to assess effects on domestic financial markets.",
    "While early outcomes suggest benefits (lower bond yields without currency depreciation or large equity impacts), policymakers should weigh:",
    "Subject: Bond yields, Central bank policy rate, Currencies, Stock markets, Yield curve",
    "Keywords: asset purchase, asset purchase program, bonds, central banks, COVID-19, EM currency, EM equity, emerging markets., equities, foreign exchange, market dynamics, market volatility, pandemic, policy announcement, policy spillover, QE announcement, quantitative easing, WP",
    "**Working Paper**"
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