OECD countries can monetise their public debt, contrary to emerging countries

The problem of fiscal solvency and limits to fiscal deficits does not arise in OECD countries, given central banks' capacity to monetise public debt. Since all OECD countries are conducting this monetisation policy, it is not leading to capital outflows or drastic exchange rate movements, probably because all OECD countries are pursuing this same policy. But if the public debt monetisation policy is implemented in emerging countries, the result will be massive capital outflows and a sharp exchange rate depreciation. To avoid this, emerging countries cannot monetise their public debt, which severely limits their ability to use an expansionary fiscal policy, unlike OECD countries.