COVID-19’s reality shock for external-funding dependent emerging economies

Alicia García-Herrero (alicia@ust.hk) and Elina Ribakova (ribakova@lse.ac.uk)
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Alicia García-Herrero: Chief Economist for Asia Pacific, NATIXIS, Department of Economics & Institute for Emerging Market Studies, Hong Kong University of Science and Technology
Elina Ribakova: Deputy Chief Economist at the Institute of International Finance
Authors registered in the RePEc Author Service: Alicia Garcia Herrero

No 2020-73, HKUST IEMS Working Paper Series from HKUST Institute for Emerging Market Studies

Abstract: The spread of COVID-19 and its associated impacts have again brought into focus the dependence of emerging market economies on external financing. This column analyses the factors that put emerging economies at an increased risk of a sudden reduction in dollar liquidity as a consequence of the COVID-19 outbreak. Based on this analysis, it reviews the key tools at the disposal of emerging economies, the Fed, and the IMF to address this problem. It concludes by offering some policy recommendations on the pecking order that could be followed to potentially shield the emerging economies from the dollar shortage problems related to COVID-19.

Keywords: COVID-19; Finance; Financial Regulation; Central Banks; Emerging Economies; IMF; Monetary Policy; Emerging Markets (search for similar items in EconPapers)
Pages: 16 pages
Date: 2020-05, Revised 2020-05
New Economics Papers: this item is included in nep-mac and nep-sea
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Citations: View citations in EconPapers (2)

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Working Paper: COVID-19’s reality shock for external-funding dependent emerging economies (2020)
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