DMRE - Emerging And Frontier Markets: Policy Tools In Times Of Financial Stress

• After the unprecedented hit to economic activity in emerging market economies from the COVID-19 pandemic, their economic output is projected to shrink by 3.3 percent in 2020.
• Central banks across emerging markets responded swiftly and forcefully with an unprecedented response of their own.
• The motivation for quantitative easing by emerging market central banks varied across countries.
• Emerging market asset purchase programs can be helpful, but further evaluation is needed as more data become available on their effectiveness, especially if these purchases continue.
• A few lessons are already emerging.

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