global-journal-of-management-and-business-research-b-economic-commerce Global Journal of Management and Business Research - B: Economic & Commerce 0975-5853 2249-4588 Global Journals Publishing Group Incorporated 83106 Spillover Dynamics of Unconventional Monetary Policy: Insights from Emerging Market Bond Capital Flows US Unconventional Policy and Emerging Market Flows JinChanglun WangMingyue CHINA 04 01 2025 24 B2 27 53

This paper sets out to model the impact of unconventional monetary policy (UMP) on capital flows into emerging market (EM) bonds. Findings indicate that expansionary UMP results in capital inflows to EMs, driven by mechanisms related to risk appetite and inertia. Notably, there exists an asymmetry in the spillover effect: the outflow triggered by contractionary UMP is significantly larger and faster than the inflow following expansionary UMP.

 unconventional monetary policy emerging market bond capital flow zero lower bound Full Text

This paper sets out to model the impact of unconventional monetary policy (UMP) on capital flows into emerging market (EM) bonds. Findings indicate that expansionary UMP results in capital inflows to EMs, driven by mechanisms related to risk appetite and inertia. Notably, there exists an asymmetry in the spillover effect: the outflow triggered by contractionary UMP is significantly larger and faster than the inflow following expansionary UMP.