Asset Purchase Programmes in the Asia-Pacific Region during COVID-19: Design and Impact
The SEACEN Centre’s new research study, entitled “Asset Purchase Programmes in the Asia-Pacific Region during COVID-19: Design and Impact” analyses the implementation of asset purchase programmes (APPs) by eight countries in the Asia-Pacific region. Overall, the countries were successful in accomplishing their stated goals: to keep yields on government debt low, lower the yield volatility and ameliorate dysfunction in these (and related markets), and attempt to ensure the continuation of monetary policy transmission. These countries’ APP use occurred within the context of their relatively comfortable pre-COVID-19 macrofinancial conditions, which supported their successful implementation. The study also provides guidance on two elements which appear key to the current (and possible future) success of APPs — communication strategies and exits. The possible strategies for the repeated use, implications, and ultimate wind-down is an important topic in the region, particularly because the use of APPs are likely to influence central banks’ perceived independence and their ability to carry out their monetary policy and financial stability mandates.
Download the research study.
