UNCONVENTIONAL MONETARY POLICIES USED IN ADVANCED ECONOMIES AND THEIR IMPACT ON EMERGENT ECONOMIES

In this paper we want to exhibit the role of unconventional monetary policies (UMP), that were used first in United States of America. This kind of monetary policies were adopted also by the National Bank of Japan, National Bank of England and by the European Central Bank. UMP are useful in the periods of crisis, depressions, when the conventional tools, are useless. The main conventional tool is the interest rate, which is established by the central bank Federal Reserve (FED) confronted the situation of zero lower bound (ZLB). ZLB is the situation when the interest rate managed by the central bank is zero or close to zero. We use a Vector autoregressive model (VAR(p)), which is used on United States. The model include variable such as: real gross domestic product growth, gross domestic product deflator, 10-year bond yield spread and FED funds rate. The impact of gross domestic deflator, 10-year bond yield spread and FED funds rate over real gross domestic product growth is significant. We studied also net inflows portfolio equity in emergent economies by building a chart.