Yesterday’s FOMC meeting cemented expectations that the Fed will start to taper its asset purchases under QE3 later this year and has weighed on EM financial markets today, but the economic impact of Fed tapering on EMs is likely to be limited. A handful of countries with large external financing requirements are vulnerable, but most EMs have cut their dependence on overseas borrowing over the past decade. Meanwhile, although the major EM economies are slowing, this is due to domestic problems rather than the scaling back of policy support in the developed world.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services