The FT's Beyond BRICS on Russia and the middle income trap http://t.co/jtNpWBc4On drawing on my work w/ Park & Shin http://t.co/NjWkRrnqvu
35 minutes ago
Emerging Market Channel: Latest Posts
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Emerging Markets
An International Perspective on the US Bailout
As the US economy is hit by the financial crisis and associated bailout costs, it is useful to take an international perspective on current events. In the last three decades, many countries in the developing world have also experienced financial crises and large bailouts. Yet, the growth gains brought by financial liberalization and deregulation have, in most cases, far more than offset the output and bailout costs of crises. Importantly, financial liberalization by itself did not generate crises: government meddling and implicit bailout guarantees were often involved. In many ways, the US story is not that different.
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Emerging Markets
Can Europe take care of its own financial crisis?
Europe’s new crisis plan will hopefully stop the panic. This column explores the remaining issues – the sharing the burden of transnational bank losses and restarting the inter-bank lending market. It suggests a technical change to the guarantees that would produce a better result.
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Asia
Hot money inflows have gone down, nervousness gone up
After the globally coordinated rescue package was announced Monday the Chinese stock markets boomed in sympathy with the rest of the world, with the SSE Composite closing up 3.6% for the day. Tuesday the SSE Composite shot up 3.5% within minutes of opening, but the party was already over in China. Over the rest of the day the SSE Composite drifted down nearly 6% from its peak to close the day down 2.7%. Wednesday was another bad day with the marking closing once again below 2000, at 1995, down 1.1% for the day. Nothing, it seems, is able to keep this market up.
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Asia
Global Financial Meltdown
As the subprime crisis in the US and the UK has now turned into a full-fledged global credit and financial crisis, policymakers worldwide are belatedly attempting to take urgent steps to prevent a global financial meltdown. Actions taken so far have included massive infusion of liquidity into their respective financial systems, blanket guarantees on bank deposits to reduce the likelihood of bank runs and recapitalization of financial institutions, including in some cases, partial bank nationalizations.
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Don't Shoot the Messenger
Europe’s Leaders Agree To A Common Front In Fighting The Banking Crisis
Well, Europe’s leaders have finally bitten the bullet. Faced with what IMF head Dominique Strauss Kahn warned could turn into a global financial meltdown, our leaders have risen to the challenge, at least to a certain extent. The details of what has been agreed continue to remain vague, but obviously I think it is a [...]
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Emerging Markets
What Europe Should Do In The Long Shadow Of The US Financial Meltdown
As Europe’s financial markets spin down into the vortex created by the US credit crisis, we can only be sure of one thing: every new day will contain new surprises. Only a few months ago, the real economy looked solid, with the Euro providing an impressive shield from financial disruption (imagine last year without the [...]
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Emerging Markets
Why government responses need to be comprehensive and coordinated
The Lehman Brothers story has shown two things – banks cannot be simply allowed to go bankrupt and a piecemeal approach will not bring banking systems back into minimal functioning condition. The lesson is that there will have to be a bailout. The contagion from the US to Europe and now to most other parts [...]
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Emerging Markets
The International Credit Crisis and the Concept of Paulson Bonds
A few months ago (April 2008), I published in Jornal do Brasil an article suggesting that the Brazilian Government should use their international reserves to mitigate the impact of the growing scarcity of credit for financing of exports. Finally, common sense prevailed recently and such measure has just been adopted in order to help Brazilian [...]
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Emerging Markets
Results from the IMF meeting – just thin gruel
The G-7 meeting on 10 October and IMF meeting on 11 October might be seen by historians as one of the major international gatherings of the decade — or more. The question is important with good results – or important as a missed opportunity? Go here for a quick look at the results of the G-7 meeting. [...]
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Emerging Markets
The outlook for emerging markets
A long and wild feast has now come to an end in the US and other advanced countries. The barmen are trying to close up but the guests have not yet paid the bill and are staggering around feeling very ill. There might be a difference between the current US recession and the one in [...]
