Estimates are obtained based on a sample spanning 1991 to 2019, using high frequency-based US monetary policy shocks (sum of conventional, Odyssean forward guidance and quantitative easing) in  monthly smooth local projections (see Jarociński, M. (2021), “Estimating the Fed's Unconventional Policy Shocks”, Working Paper Series, No 2585, ECB, August (revised June 2022)). 20. Obstfeld, M. (2022), op. cit. 21.
As a consequence, many emerging market countries reduced their domestic and external debt, and in the process, reduced currency mismatches which in some respects rendered these emerging markets less vulnerable to currency depreciation. There have also been efforts to reduce the external vulnerability through debt buybacks, while reserves accumulation has also been gathering pace over the past few years.