In the last few years, several central banks have implemented negative interest rate policies to boost the domestic economy. However, such policies may have some unintended consequences for the emerging Asian markets. The analysis provides an assessment of the domestic and global implications of negative interest rate policy and how it differs from that of quantitative easing. It shows that the impact of nirp is heterogeneous, with differential impacts for big Asian economies (India and Indonesia) and small trade-dependent economies (Hong Kong, Philippines, South Korea, Singapore and Thailand). Quantitative easing, on the other hand, has no significant impact on inflation but nominal gdp growth declines in eams. The currency appreciates and exports decline. The impact is much more severe in big emerging economies.
