Growth rates in emerging countries tend to be volatile and are affected by what happens beyond their borders. A recent recent study by economists at the IMF (International Monetary Fund) decomposes deviations from trend growth of emerging economies into internal and external factors. The latter include things such as global financing conditions, growth in advanced […]
Weighing in on the Argentine Peso
Last Friday, Argentina saw the largest devaluation of the peso in the last 12 years, since the default in 2002 …
Capital controls: the right time to talk about them?
In recent months, a number of emerging countries have been experiencing capital outflows. As expected, these outflows have tended to depreciate the currencies of emerging economies. More importantly, these outflows have also started raising doubts about the resilience of growth rates in the emerging world. Money started flowing out of emerging markets right after Ben […]
Towards a re-balanced China
Since the start of the opening-up and reform period in 1978, the rest of the world has been stupefied by China’s long period of very high growth. Now all we hear about is that growth is slowing down. Further, this time the chinese authorities are not offsetting the slowdown by large fiscal and monetary stimuli: […]