About this work
The dollar’s tendency to strengthen during crises gave the United States room for an exceptional fiscal and monetary response to COVID in April 2020. Jonathan Fortun and Robin Brooks contrast that advantage with emerging markets, where currency depreciation and rising bond yields constrained government action. They warned that limited policy space could compound the weak growth many emerging economies had already experienced before the pandemic.
Abstract
The dollar’s tendency to strengthen during crises gave the United States room for an exceptional fiscal and monetary response to COVID in April 2020. Jonathan Fortun and Robin Brooks contrast that advantage with emerging markets, where currency depreciation and rising bond yields constrained government action. They warned that limited policy space could compound the weak growth many emerging economies had already experienced before the pandemic.
Cite this work
Jonathan Fortun, Robin Brooks (2020). GMV: COVID-19 and EM Policy Space. Institute of International Finance.