Emerging Markets: Prospects and Challenges

Tryggvi Gudmundsson, Vladimir Klyuev, Leandro Medina (), Boaz Nandwa, Dmitry Plotnikov, Francisco Schiffrer and Di Yang

No 2022/035, IMF Working Papers from International Monetary Fund

Abstract: This article documents recent developments in emerging markets in the context of the COVID-19 pandemic, assesses their prospects and challenges, and discusses appropriate policy settings for the medium term. It argues that EM policymakers’ ability to grapple with an incomplete and uneven recovery will be constrained by high public debt and uncertain inflation prospects as well as external risks surrounding capital flows and exchange rate developments. The paper also discusses potential impact of a tightening in global financial conditions and appreciation of the US dollar that could be triggered by a general increase in risk aversion or a reassessment of the likely path of US monetary policy.

Keywords: Emerging markets; COVID-19; Monetary Policy; EM inflation; emerging market bond yields; EM NEER; EM policymakers' ability; monetary policy tightening; Emerging and frontier financial markets; Inflation; Exchange rates; Global (search for similar items in EconPapers)
Pages: 22
Date: 2022-02-18
New Economics Papers: this item is included in nep-cba and nep-cwa
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=513389 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2022/035

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().