Flash: A tumultuous new era for emerging markets – Nomura

FXstreet.com (Barcelona) – The selling in emerging market currencies marks a tumultuous new era, one that should not be taken for granted, as countries such as Indonesia or India, just to name a few, failed to prevent ‘hot money’ rushing into its economies, notes Richard Koo, chief economist at Nomura Research Institute.

Key Quotes

“The lesson for emerging economies today is that in a world in which the industrialized economies are free to engage in quantitative easing at will, local authorities need to have the courage to restrict capital inflows or stop them altogether.”

“It should also be remembered that the recent rise …read more