02241cas a2200277 a 4500 AALejournalIMF013524 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484381847 1018-5941 BD-DhAAL BD-DhAAL McGettigan, Donal. Monetary Policy in Emerging Markets : Taming the Cycle / Donal McGettigan, Kenji Moriyama, Jean Noah Ndela Ntsama, Francois Painchaud. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In contrast to advanced markets (AMs), procyclical monetary policy has been a problem for emerging markets (EMs), with macroeconomic policies amplifying economic upswings and deepening downturns. The stark difference in policy has not been subject to extensive study and this paper attempts to address the gap. Key findings, using a large sample of EMs over the past 50 years, are: (i) EMs have adopted increasingly countercyclical monetary policy over time, although large differences remain among EMs and policies became more procyclical during the recent crisis. (ii) Inflation targeting and better institutions have been key factors behind the move to countercyclicality. (iii) Only deep financial markets allow EMs with flexible exchange rate regimes turn countercyclical. (iv) More countercyclical policy is associated with far less volatile output. The economically meaningful impact of IT on monetary policy countercyclicality and output variability is another reason in its favor, over and above better inflation outcomes. Mode of access: Internet Moriyama, Kenji. Noah Ndela Ntsama, Jean. Painchaud, Francois. IMF Working Papers; Working Paper ; No. 2013/096 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/096/001.2013.issue-096-en.xml IMF e-Library