{
  "title": "Unconventional Monetary Policies in Emerging Markets and Frontier Countries",
  "publication": "IMF Working Papers, January 22, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013",
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  "summary": "The COVID-19 crisis induced an unprecedented launch of unconventional monetary policy through asset purchase programs (APPs) by emerging market and developing economies.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- The COVID-19 crisis induced an unprecedented launch of unconventional monetary policy through asset purchase programs (APPs) by emerging market and developing economies.\n- The paper presents a new dataset of APP announcements and implementation from March until August 2020 for 27 emerging markets and 8 small advanced economies.\n- APPs’ effects on bond yields, exchange rates, equities, and debt spreads are estimated using different methodologies."
    },
    {
      "heading": "Dataset and Methodology",
      "content": "- Coverage period: March until August 2020.\n- Economies covered: 27 emerging markets and 8 small advanced economies.\n- Outcomes analyzed: bond yields, exchange rates, equities, and debt spreads.\n- Approaches: different estimation methodologies (specific methods not reproduced beyond description in source)."
    },
    {
      "heading": "Key Findings",
      "content": "- APPs were successful in significantly reducing bond yields in EMDEs.\n- The effects of APPs on bond yields were stronger than those of policy rate cuts.\n- These results suggest that such unconventional monetary policy (UMP) could be important tools for EMDEs during financial market stress."
    },
    {
      "heading": "Policy Implications",
      "content": "- APPs can serve as effective instruments to lower bond yields in emerging market and developing economies during periods of market stress.\n- Given that APP effects on yields exceeded those of policy rate cuts, APPs represent a complementary or alternative policy lever for EMDEs facing dysfunctional markets.\n\n---\n\n Content in this bundle\n\n- 1. Stress in Financial Markets, January–July 2020\n  - 1. Stress in Financial Markets, January–July 2020 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1. Stress in Financial Markets, January–July 2020 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013"
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    "Authors: Chiara Fratto, Brendan Harnoys Vannier, Borislava Mircheva, David de Ferranti, Hélène Poirson",
    "Published: January 22, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513567211.001",
    "The COVID-19 crisis induced an unprecedented launch of unconventional monetary policy through asset purchase programs (APPs) by emerging market and developing economies.",
    "The paper presents a new dataset of APP announcements and implementation from March until August 2020 for 27 emerging markets and 8 small advanced economies.",
    "APPs’ effects on bond yields, exchange rates, equities, and debt spreads are estimated using different methodologies.",
    "Coverage period: March until August 2020.",
    "Economies covered: 27 emerging markets and 8 small advanced economies.",
    "Outcomes analyzed: bond yields, exchange rates, equities, and debt spreads.",
    "Approaches: different estimation methodologies (specific methods not reproduced beyond description in source).",
    "APPs were successful in significantly reducing bond yields in EMDEs.",
    "The effects of APPs on bond yields were stronger than those of policy rate cuts.",
    "These results suggest that such unconventional monetary policy (UMP) could be important tools for EMDEs during financial market stress.",
    "APPs can serve as effective instruments to lower bond yields in emerging market and developing economies during periods of market stress.",
    "Given that APP effects on yields exceeded those of policy rate cuts, APPs represent a complementary or alternative policy lever for EMDEs facing dysfunctional markets.",
    "**1. Stress in Financial Markets, January–July 2020**"
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