Unconventional Monetary Policies in Emerging Markets and Frontier Countries
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
The COVID-19 crisis induced an unprecedented launch of unconventional monetary policy through asset purchase programs (APPs) by emerging market and developing economies. This 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. The results confirm that APPs were successful in significantly reducing bond yields in EMDEs, and these effects were stronger than those of policy rate cuts, suggesting that such UMP could be important tools for EMDEs during financial market stress.
Series:
Working Paper No. 2021/014
Subject:
Bond yields Bonds Exchange rates Financial institutions Financial services Securities Sovereign bonds Yield curve
Frequency:
regular
English
Publication Date:
January 22, 2021
ISBN/ISSN:
9781513567211/1018-5941
Stock No:
WPIEA2021014
Pages:
71
Please address any questions about this title to publications@imf.org