Friday, December 6, 2013

Emerging Markets Mirror Euro Zone Problems

There are problems with outsourcing your monetary policy.  The euro zone is the most obvious case in point. But emerging markets economies’ difficulties are surprisingly similar. Whereas euro-zone member states have handed their monetary levers to the European Central Bank, emerging market economies have handed a substantial degree of their domestic policy to the Federal Reserve. And that’s going to be a worry for them over the coming months as Fed tapertalk resurfaces.

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