Time to Rethink Monetary Policy in Emerging Economies: Touching the Tip of an Iceberg

Abstract

Emerging economies are struggling to keep their growth momentum alive in the face of waning global demand. Yet, they are partly handicapped by the loss of monetary policy independence and greater exposure to potential capital reversal. Against this background, a comprehensive review of all their policy options are in order, including both macro policy instruments, micro measures, and global safety net aimed at attaining the best possible solution to escaping global recession.

Keywords: monetary policy, emerging economies