TY - BOOK ID - 133349557 TI - Effects of Emerging Market Asset Purchase Program Announcements on Financial Markets During the COVID-19 Pandemic AU - Sever, Can. AU - Goel, Rohit. AU - Drakopoulos, Dimitris. AU - Papageorgiou, Evan. PY - 2020 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Finance: General KW - Investments: Bonds KW - Money and Monetary Policy KW - Money Supply KW - Credit KW - Money Multipliers KW - Central Banks and Their Policies KW - International Finance: General KW - Information and Market Efficiency KW - Event Studies KW - International Financial Markets KW - General Financial Markets: General (includes Measurement and Data) KW - Interest Rates: Determination, Term Structure, and Effects KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Finance KW - Investment & securities KW - Banking KW - Monetary economics KW - Bond yields KW - Yield curve KW - Central bank policy rate KW - Stock markets KW - Currencies KW - Interest rates KW - Bonds KW - Stock exchanges KW - Money KW - South Africa UR - https://www.unicat.be/uniCat?func=search&query=sysid:133349557 AB - The COVID-19 pandemic led many emerging market central banks to adopt, for the first time, unconventional policies in the form of asset purchase programs. In this study, we analyze the effects of these announcements on domestic financial markets using both event studies and local projections methodology. We find that these asset purchase announcements lowered bond yields, did not lead to a depreciation of domestic currencies, and did not have much effect on equities. While the immediate effect of asset purchases appears positive, further consideration of the risks and longer-term effects of unconventional monetary policies is needed. We highlight the trade-offs involved with the implementation of these measures, and discuss their risks. This working paper adds to the debate on how asset purchase programs should be a regular part of the emerging market policy toolkit. ER -