02123cas a2200253 a 4500 AALejournalIMF017827 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484311417 1018-5941 BD-DhAAL BD-DhAAL Singh, Manmohan. Central Bank Balance Sheet Policies and Spillovers to Emerging Markets / Manmohan Singh, Haobin Wang. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (27 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 We develop a theoretical model that shows that in the near future, the monetary policies of some key central banks in advanced economies (AEs) will have two dimensions-changes in short-term policy rates and balance sheet adjustments. This will affect emerging market economies (EMs), especially those with a pegged exchange rate, as these EMs primarily use a single monetary policy tool, id est, the short-term policy rate. We show that changes in policy rates and balance sheet adjustments in AEs may differ in their respective financial spillovers to pegged EMs. Thus, it will be difficult for EMs to mitigate different types of spillovers with a single monetary policy tool. In that context, we use the model to show how EMs might use additional tools-capital controls and/or macro-prudential policy-to complement their monetary policy and financial stability toolkit. We also discuss how balance sheet adjustments that affect long-term interest rates may percolate to influence short-term interest rates via financial plumbing. Mode of access: Internet Wang, Haobin. IMF Working Papers; Working Paper ; No. 2017/172 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/172/001.2017.issue-172-en.xml IMF e-Library