The Economist (August 24)
Since the U.S. Federal Reserve intimated that it would begin tapering its quantitative easing program in 2013, “there has been a great sucking of funds from emerging markets. Currencies and shares have tumbled, from Brazil to Indonesia, but one country has been particularly badly hit.” India is looking less like “an economic miracle” and more like a country teetering on the verge of a full-blown crisis. “The rupee has tumbled by 13% in three months. The stockmarket is down by a quarter in dollar terms. Borrowing rates are at levels last seen after Lehman Brothers’ demise. Bank shares have sunk.”
Tags: Banks, Brazil, Crisis, Currencies, Emerging markets, Fed, India, Indonesia, Lehman Brothers, Miracle, Quantitative easing, Rupee, Shares, Stockmarket, Tapering, U.S.
