Investigators from Federal Reserve Bank Target Investment (Policy Rules and Large Crises In Emerging Markets): Investment

2025 DEC 01 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Data detailed on Investment have been presented. According to news reporting from St. Louis, Missouri, by NewsRx journalists, research stated, “Emerging economies have adopted fiscal and monetary rules to discipline government policy. We study the value and macroeconomic implications of rules and flexibility within a sovereign-default model that incorporates domestic fiscal and monetary policies and long-term external debt.”

The news correspondents obtained a quote from the research from Federal Reserve Bank, “Adopting monetary targets and debt limits during normal times yields welfare gains. Suspending rules can significantly influence policy, macroeconomic outcomes, and welfare during large, unforeseen crises.”

According to the news reporters, the research concluded: “The gains from flexibility depend on how quickly policymakers are able to reimpose rules after the crisis.”

This research has been peer-reviewed.

For more information on this research see: Policy Rules and Large Crises In Emerging Markets. Journal of International Economics, 2025;158. Journal of International Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of International Economics - http://www.journals.elsevier.com/journal-of-international-economics/)

Our news journalists report that additional information may be obtained by contacting Julian Kozlowski, Federal Reserve Bank, St. Louis, MO 63102, United States. Additional authors for this research include Emilio Cesar Espino, Fernando M. Martin and Juan M. Sanchez.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jinteco.2025.104179. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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