Tag Archives: Emerging Markets
Nigeria Oil (REUTERS/Akintunde Akinleye)

Part IV of IV: Nigeria’s failed attempt at subsidy reform

This final part in the GRI Series on energy subsidies examines Nigeria’s attempt at reform, and why it went wrong. Gradual adjustment and decision transparency are key elements of success. Nigeria provides an excellent case study on the failure to properly manage the removal of energy subsidies. Currently the eighth most populous country in the […]

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Jakarta, Indonesia

Indonesia latest emerging market to reject investment treaties

Jakarta’s turn-around is only the latest in a growing chorus of opposition to bilateral investment treaties, meant to attract foreign investors by solidifying FDI protection at the price of curtailing sovereign policy space. The trend may catch on. For investors whose capital is caught up in various emerging markets, this last year has been particularly difficult. In large […]

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Source: ThinkProgress

Part II of IV: Why economics, not politics, should steer energy subsidies

The first part in this series examined why energy subsidies still widely exist, despite a growing consensus arguing for their removal. This section will look at their economic cost and why emerging economies attempting to reform subsidies in a credible way could prove to be a smart long-term investment. Energy subsidies have proven economically inefficient, […]

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Janet Yellen (AP Photo/Mark Lennihan)

Yellen’s first statements chart clear path for Federal Reserve

The new Fed Chairwoman made clear to Congress that her Fed will focus on improving the labor market and being straightforward in its messaging. In her first major appearance since becoming the new Chairwoman of the Federal Reserve, Janet Yellen spent last Tuesday answering questions from the House Financial Services Committee. Although she had made abundantly […]

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Is capital account convertibility as great as it seems?

Capital account convertibility has many advantages. But does it make sense to link up domestic financial markets tightly with international ones? As the euphoria of cheap and easy money wears off, emerging markets are grappling with withdrawal symptoms owing to gradual weaning off by the US Federal Reserve. The current argument for considerable capital account […]

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Rafael Matsunaga via Wikipedia

US taper puts pressure on emerging markets

The Federal Reserve’s decision in January to continue reducing the pace of asset purchases has put emerging markets in a bind. At the end of January, the Federal Reserve decided to further reduce the pace of its monthly asset purchases by another $10 billion, down to $65 billion. This followed its December decision to initiate […]

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emerging markets

Why emerging markets are not collapsing

The recent rout of emerging markets prompt worries over a new emerging market crisis like those of the 1990s and early 2000s. While significant downside risks exist, differentiation is likely to take over as markets calm and investors pinpoint those countries with strong fundamentals and growth potential. Emerging markets have had a difficult few weeks. […]

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IMF predicts a world economy in transition

State of the world economy In the October 2013 edition of the World Economic Outlook, a biannual report on the state of the world economy, the International Monetary Fund presents a somewhat downbeat assessment, trimming down its global growth forecast from 3.2% to 2.9% for this year. However, according to IMF estimates, as advanced economies […]

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Recife, Brazil

Brazil and Turkey: The Party is Over

The world held its breath on September 18th. Would Ben Bernanke taper? Investors around the globe breathed a sigh of relief when he postponed slowing down the Fed’s bond buying programme. The “hot money” honeymoon continues. This sense of padded comfort is misleading. The flow of hot money is aimed not at long-term investments but […]

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Raghuram Rajan. credit: Deutsche Bank

Raghuram Rajan to Save the Plummeting Rupee

The U.S. Federal Reserve decided at this week’s FOMC meeting to continue the pace of asset purchases, to the surprise of markets. Since May this year, when Bernanke indicated that the Fed might slow its monetary stimulus, focus has shifted to the state of the emerging economies. Following the financial crisis and the subsequent bottoming out of interest rates […]

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