Tag Archives: Emerging markets

India, the taper and capital controls

By James Saft – India has rolled out a series of capital controls to help support the partially convertible rupee, which has been hammered 13 percent lower so far this year and stands at an all-time low against the dollar.

While India’s problems may have been manufactured at home, the recognition of them was touched off by events abroad, namely the prospect of the U.S. Federal Reserve beginning to taper its purchases of bonds.

We have been here before. The Latin American debt crisis of the 1980s and the Asian crisis in the late 1990s both happened in the wake of U.S. credit tightening cycles kicking off, and both ended badly. more> http://tinyurl.com/loat3f2

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Fragile world, fractious leaders

By Stella Dawson – Growth in emerging economies is slowing and the recovery in the United States could be losing some momentum, worrisome developments when European leaders have yet to complete the repairs needed to shore up monetary union.

The situation forms a vulnerable backdrop for finance officials from the world’s leading economies, who gather in Washington this week for the Group of 20/International Monetary Fund/World Bank meetings.

The managing director of the IMF, Christine Lagarde, has offered this blunt description: “The risks remain high; the situation fragile.” more> http://tinyurl.com/6oqog6k