By Jiaqian Chen, Tommaso Mancini-Griffoli, and Ratna Sahay The Federal Reserve’s recent unconventional monetary policies seem to have affected emerging markets more than traditional policies. When the United States sneezes, the saying goes, the rest of the world catches a cold. This adage is not mere folklore. The recent global financial crisis drove home the importance … Continue reading
Financial market liquidity can be fleeting. The ability to trade in assets of any size, at any time and to find a ready buyer is not a given. By José Viñals As discussed in some detail last fall in this blog, a number of factors, including the evolving structure of financial markets and some regulations appear to … Continue reading
By Sputnik After the Swiss National Bank (SNB) has undermined global confidence in regulators, any sudden action by the US Fed might trigger a feverish buyout of the dollar, pushing its FX rate sky-high, demolishing the entire architecture of international trade in goods and services. MOSCOW, January 21 (Sputnik), Kristian Rouz — The recent shock to the currencies … Continue reading
By Ratna Sahay and Preya Sharma IMF You may hear a sigh of relief from emerging market watchers as we approach the end of the year. Yet, against the backdrop of a prolonged period of low interest rates in advanced economies, huge capital flows, and a slowdown in emerging market growth, 2015 promises to keep … Continue reading