Impact of unconventional monetary policies on the developing economies

Abstract

Quantitative Easing was adoptive as an unconventional monetary policy by the U.S. Federal Reserve to tackle the 2008 crisis of the housing bubble burst. The objective of such policy is to prevent deflation (retain asset prices) and boost spending to cause economic activity to go up. The policy is typically Keynesian and its impact on the U.S. economy is debated to be around moderate to high.1 However, the U.S. was not the only economy affected by these measures and this report focuses on the impact of QE on developing economies around the world.