Macroeconomic Shocks and Unconventional Monetary Policy Impacts on Emerging Markets

Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and finally developed economies' implementation of unconventional monetary policies. The implementation of quantitative easing, ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets explains how shocks stemming from the global financial crisis have affected macroeconomic and financial stability in emerging Asia.

Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets brings together the most up-to-date knowledge impacts of recent macroeconomic shocks on Asia's real economy; the spillover effects of macroeconomic shocks on financial markets and flows in Asia; and key challenges for monetary, exchange rate, trade and macro prudential policies of developing Asian economies. It is authored by experts in the field of international macroeconomics from leading academic institutions, central banks, and international organizations including the International Monetary Fund, the Bank for International Settlement, and the Asian Development Bank Institute.

Naoyuki Yoshino, Dean, Asian National Development Bank,Pornpinun Chantapacdepong, Assistant Director, Monetary Policy Group, Bank of Thailand,Matthias Helble, Senior Economist and Co-Chair, Research Department, Asian Development Bank Institute

Naoyuki Yoshino is Dean of the Asian Development Bank Institute (ADBI) and Professor Emeritus at Keio University, Tokyo, Japan. Professor Yoshino has been a visiting scholar at the Massachusetts Institute of Technology, US, and a Visiting Professor at various universities including the University of New South Wales, Australia, Fondation Nationale des Sciences Politiques, France, and University of Gothenburg, Sweden.
Naoyuki's professional career includes membership in numerous government committees. He was named Director of the Japan Financial Services Agency's (FSA) Financial Research Center (FSA Institute) in 2004 and is now Chief Advisor. He was appointed as Chair of the Financial Planning Standards Board in 2007. He has served as Chairperson of the Japanese Ministry of Finance's Council on Foreign Exchange as well as its Fiscal System Council, and has been a Board Member of the Deposit Insurance Corporation of Japan and President of the Financial System Council of the Japanese Government.

Pornpinun Chantapacdepong is an Assistant Director at the Balance of Payment Analysis Division, Economic and Policy Department, Monetary policy Group, Bank of Thailand. She was a research fellow at the Asian Development Bank Institute (ADBI) from March 2015- March 2017. She specializes in monetary policy, exchange rate policy, international capital flows, volatility in asset prices, and central bank balance sheets. She holds economics degrees from Thammasat University (BA), the University of Warwick (MSc), and the University of Bristol (PhD). She also taught at Thammasat University, Kasetsart University, University of Tokyo, and Hitotsubashi University.


Matthias Helble is Senior Economist and Co-Chair of the Research Department of the Asian Development Bank Institute (ADBI). His research focus lies in the areas of international economics as well as health economics. His work has been published in flagship reports of international organizations as well as in numerous books and scientific journals. Matthias began his professional career in the trade team of the Development Research Group of the World Bank in Washington, DC, before joining the World Health Organization in Geneva, Switzerland. He then worked as an economist for the World Trade Organization in the areas of environment, climate change, and technical standards. Matthias Helble joined ADBI in August 2013. He holds degrees in economics from the University of Tubingen (BA, MSc) in Germany, the University of Wisconsin-Madison (MA) in the United States, and the Graduate Institute of International and Development Studies (MSc, PhD) in Geneva.

Part I: Overview: The Empirics of Spillovers
1. An Overview of the Issues and the Book, Pornpinun Chantapacdepong, Matthias Helble, and Naoyuki Yoshino
2. Capital Flow Surges and Consequences, Atish R. Ghosh and Mahvash S. Qureshi
Part II: Mechanism Driving Financial Spillovers during the Recent Crisis: Price-Oriented and Quantity-Oriented
3. Uncertainty about Federal Reserve Policy and its Transmission to Emerging Economies: Evidence from Twitter, Peter Tillmann
4. Spillover Effects of Japan's Quantitative and Qualitative Easing on East Asian Economies, Shin-Ichi Fukuda
5. Volatility Contagion across the Equity Markets of Developed and Emerging Market Economies, Masazumi Hattori, Ilhyock Shim, and Yoshihiko Sugihara
6. Spillovers of the United States' Unconventional Monetary Policy to Emerging Asia: The Bank Lending Channel, Ying Xu and Hai Anh La
7. Measuring Systemic Risk Contribution of International Mutual Funds, Joshua Aizenman and Huanhuan Zheng
8. Domestic and Cross-border Impact of US Monetary Policy at the Zero Lower Bound, Qianying Chen, Andrew Filardo, Dong He, and Feng Zhu
9. Spillover Effects of Unconventional Monetary Policy on Asia and the Pacific, Maria Teresa Punzi and Pornpinun Chantapacdepong
10. Spillovers of United States and People's Republic of China Shocks on Small Open Economies: The Case of Indonesia, Berry Harahap, Pakasa Bary, Linda Panjaitan, and Redianto Satyanugroho
11. The Impacts of US Monetary Policy and Other External Shocks on the Hong Kong, China Economy: A Factor-Augmented VAR Approach, Berry Harahap, Pakasa Bary, Linda Panjaitan, and Redianto Satyanugroho
Part IV: Implications for Monetary Policy and Macroprudential Policy
12. Dealing with Quantitative Easing Spillovers in East Asia: The Role of Institutions and Macroprudential Policy, Ayako Saiki, Pornpinun Chantapacdepong, and Ulrich Volz
13. 1. Ultra-Low Interest Rates and Growth in Emerging East Asia from a Hayekian Perspective, Gunther Schnabl