Argentina, Turkey, Indonesia – why it’s too early to speak of contagion in emerging markets

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Turkey, Indonesia and Argentina have all seen their currencies experience huge drops in recent months.

Similarly, stocks in India, South Africa, Mexico and others have taken a hit.

  • Alain Naef
  • The Conversation

Emerging markets across the board have been under pressure since the US Federal Reserve raised interest rates in June.

Cyl 5eGovernments and companies had borrowed in dollars when interest rates were low and the dollar was weak.

Now the dollar is strong and interest rates are rising.

And research by economists Michael Bordo, Chris Meissner and David Stuckler has shown that countries with higher…

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