Credit where credit’s due for EM unconventional policies

Alongside massive global liquidity support, EM policymakers’ firm deployment of monetary and prudential policies have enabled their economies to pass an incredibly severe stress test better than many thought possible, with most having achieved remarkable stability in money and credit growth during 2020.

What you will learn from this report:

  • The robust rally in EM assets in part is a tribute to these actions.
  • We expect performance to be sustained in 2021 once the reflation trade loses momentum. 
  • This is an era for adventurist rather than conservative economic policy.
  • The focus has been on QE, but that is a but one of many tools in the armoury.

Topics: Coronavirus

credit em pic