TY  - BOOK
AU  - De Leo,Pierre
AU  - Gopinath,Gita
AU  - Kalemli-Özcan,Ṣebnem
ED  - National Bureau of Economic Research.
TI  - Monetary Policy Cyclicality in Emerging Economies
T2  - NBER working paper series
PY  - 2022///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - General
KW  - jelc
KW  - International Finance
N1  - September 2022; Hardcopy version available to institutional subscribers
N2  - Conventional wisdom holds that monetary policy in emerging economies is procyclical, unlike in advanced economies. Using a large sample of countries from the mid-1990s onwards, we show that the conduct of monetary policy is not fundamentally different across these two groups of countries. Emerging and advanced economies alike lower their policy rates when economic activity decelerates, both unconditionally and following exogenous U.S. monetary policy tightening. We show that the common practice of using market rates, such as government bond rates, to proxy for the stance of monetary policy leads one to draw inaccurate conclusions about emerging economies' monetary policy cyclicality due to inherent risk premia in those market rates
UR  - https://www.nber.org/papers/w30458
UR  - http://dx.doi.org/10.3386/w30458
ER  -