The global financial crisis and monetary policy responses in emerging market economies

The aim of the paper is to investigate the role of the option of neutralization of external shocks chosen by monetary authorities in mitigating the impact of the global financial crisis in emerging market economies. The analysis is divided into two parts: in the first one country were classified according to their policy of mitigating the crisis. The division was conducted using classic techniques (agglomeration) as well as partitioning methods, k-means clustering and partitioning around medoids. Next canonical discriminate functions were estimated, which allowed interpreting the partitioning with reference to the tools used to mitigate the results of external shocks. The second part of the paper investigates the diversity of the groups obtained with regards to the costs of the crisis (slowing down the pace of the economic growth). Taking into account non-Gaussian settings, we decided to use quantile regression, which provide in addition, more complete picture of relationship between the covariates and the distribution of the GDP growth.