Robert M. La Follette School of Public Affairs

Central Banking: Perspectives from Emerging Economies

Central banks in emerging market economies have the same problems that their counterparts in advanced economies confront when conducting monetary policy. In addition, emerging markets encounter more shocks from the external environment due to their relatively small economic size. In this context, the exchange rate and the management of capital flows take on a heightened importance. Overarching these concerns is the fact that most emerging markets, by definition, are characterized by less well developed financial markets that constrain and complicate the conduct of monetary policy.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2014-006
  • Author(s): Menzie D. Chinn