The volatility in emerging markets has abated a bit, but may resume in the fallout of the Russian takeover of the Crimea. The capital outflows and currency depreciations experienced in some emerging market nations have been attributed to their choice of policies. But their economic situations reflect the domestic impact of capital inflows as well [...]
In my recent seminars at US universities, Brazil’s disappointing growth in the last three years (2.7% in 2011, 1.0% in 2012 and 2.3% in 2013) have often been a surprise to many. Apparently, the good years of 2003-2010, in which Brazil grew an average of 4% per year, created the idea that Brazil was not [...]
Only a year ago, Nigeria’s BRIC future still seemed reachable. Today, domestic threats are increasing, while the international environment is far more challenging. A decade ago, Goldman Sachs’s BRIC analysts included Nigeria among the potential BRIC successor economies. A few years later, the government released its transformation agenda, aimed at making Nigeria one of the [...]
Crisis in Crimea
The conflict between Russia and Ukraine escalates, evoking fond memories of the Cold War.
Must ReadEmerging Markets
NEW YORK – One definition of an emerging-market economy is that its political risks are higher, and its policy credibility lower, than in advanced economies. After the financial crisis, when emerging-market economies continued to grow robustly, that definition seemed obsolete; now, with the recent turbulence in emerging economies driven in part by weaker economic-policy credibility [...]
Megabanks’ stock prices continue to climb, as investors have realized that the further the financial crisis fades into the rear-view mirror, the more easily these firms can find new sources of profit by exerting market power and skirting regulations.