Federal Reserve Bank of St. Louis: 'Policy Rules and Large Crises in Emerging Markets'
June 24, 2025
June 24, 2025
ST. LOUIS, Missouri, June 24 (TNSLrpt) -- Research published on June 12, 2025 from the Federal Reserve Bank of St. Louis, in collaboration with UTDT, suggests that while adopting fiscal and monetary policy rules can bring significant welfare gains to emerging economies during normal times, the ability to suspend these rules is crucial during large, unforeseen crises like the COVID-19 pandemic. The study emphasizes that the benefits of such flexibility hinge on the credibility of reimposing these . . .