Emerging Markets Can Now Safely Navigate Global Financial Crises.
Emerging market economies changed their monetary policy during the 2008-2009 global financial crisis to help soften the impact. This was different from past crises when they had to tighten policy. Factors like strong economic basics, trade openness, financial reforms, and inflation targeting helped them make this shift. By keeping these factors strong, EMEs can likely continue to use countercyclical monetary policy effectively.