## Unconventional Monetary Policies in Emerging Markets and Frontier Countries

_IMF Working Papers, January 22, 2021_

## Source details

**Canonical URL:** [Unconventional Monetary Policies in Emerging Markets and Frontier Countries](https://www.imf.org/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013)

## Other formats

- [Markdown version](/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013/index.md)
- [Structured JSON version](/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013/index.json)
- [Bundle manifest](/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013/bundle-manifest.json)

## Bibliographic details
- 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

---

### Overview
- 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.

### Dataset and Methodology
- 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).

### Key Findings
- 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.

### Policy Implications
- 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.

---

## Content in this bundle

- **1. Stress in Financial Markets, January–July 2020**
  - [1. Stress in Financial Markets, January–July 2020 (Markdown version)](/-/media/files/publications/wp/2021/english/wpiea2021014-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Stress in Financial Markets, January–July 2020 (PDF)](/-/media/files/publications/wp/2021/english/wpiea2021014-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2021/01/22/unconventional-monetary-policies-in-emerging-markets-and-frontier-countries-50013_