Impact of U.S. Monetary Policy on Bond Spreads in Emerging Market Economies: A Comprehensive Analysis
This paper examines the impact of U.S. monetary policy on sovereign bond spreads in emerging market economies under the period of Unconventional Monetary Policy (UMP). Applying a Fixed effects and Pooled Mean Group method on monthly data from 2009-2020 it shows evidence that changes in spreads can be attributed to an elevated probability of emerging markets being unable to repay loans, arising fro