Is "yield curve control" in OECD countries an opportunity for emerging countries?
OECD countries are explicitly or de facto switching to "yield curve control", i.e. central banks controlling long-term interest rates. Yield curve control ensures solvency among borrowers, particularly governments. As yields in OECD countries are kept very low on risk-free bonds, but also on risky bonds as investors switch to these bonds, the effect may be to make emerging countries' local currency bonds attractive for investors for a long time to come. Thanks to the very low long-term interest rates in OECD countries, investors could therefore receive a continuous flow of financing from OECD countries, at a reasonable cost, and without taking currency risk .