Paper warns emerging markets of pitfalls of credit easing
Developing and emerging countries may experience macroeconomic repercussions
A paper published by the International Monetary Fund has warned emerging and developing countries should be “cautious” when using credit easing, as it may cause adverse effects for the economy.
In their paper, Luis Jácome, Tahsin Saadi Sedik and Alexander Ziegenbein examine whether credit easing policies enacted by advanced economies during the crisis, could be viable for other countries coping with a banking crisis. Former Fed chair Ben Bernanke broke credit easing into three categories
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