Are Emerging Markets Headed for a Major Crisis?
The G20 meeting of finance ministers and central banks chiefs from the major advanced and emerging market economies just took place over the weekend. As a type of 'steering committee' for the global economy (the G20 nations represent roughly 85% of global GDP), what does the world have in store? A major topic of discussion (and tension) was the Chinese currency devaluation. In addition to that, it looks like the U.S. - despite IMF and emerging market pressure - may be raising interest rates in the coming weeks or months. What would the effect be on the rest of the world, notably the emerging economies, if the U.S. were to begin raising rates at this time? The answer isn't a pretty one.
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