The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Does QE go into EM?

How can quantitative easing best alleviate the financial fallout from Covid-19? Unconventional monetary policies make investors in emerging markets uncomfortable – especially in Latin America. Little wonder that central banks are treading a cautious path.


We have become used to this new era of low, falling and synchronized inflation in developed markets and emerging markets, and so the financial system’s allocations are geared to low inflation and no inflation surprises. If investors all have to shuffle their asset allocation in response to an inflation shock, there is just no way they can do that. It would cause havoc in the market.”

So warns Elina Ribakova, deputy chief economist at the Institute of International Finance (IIF), adding that the chance that the growth in the use of quantitative easing in emerging markets might be the source of such inflation-led havoc is “an unlikely scenario”.


Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree