The mess in Russia — including a falling ruble, de facto currency controls, economic contraction, and bank bailouts — is as much about problems specific to Russia as it is about the slowdown in China, the strong dollar, and monetary policy divergence globally. But this has to be worrying for investors looking at emerging markets.
In truth, the problems for emerging markets started six years ago, during the depths of the financial crisis. The genesis of emerging-market vulnerability was born out of the move to zero interest rates by a host of developed-economy central banks trying to spur growth in their …read more
Source: Foreign Policy
