This paper draws on a unique data set on the nontraditional systemic liquidity easing
measures recently undertaken by many emerging market economies. It offers an empirical
analysis of the key determinants affecting the decision to undertake these measures over the
period September 2008–March 2009. The paper finds that economy size, access to
nternational credit markets, CDS spreads, currency depreciation, and current account
balances are among the key factors influencing the adoption of these measures. It provides a
ationale for the differences in central bank policy responses, which reflect differences in
economic structures rather than conflicting views on fundamental principles. The paper also
provides a preliminary assessment of the effectiveness of these measures and points out that
despite their positive impacts, they have not fully shielded the real economy from the recent
inancial meltdown.