Financial Times (October 5)
2015/ 10/ 06 by jd in Global News
Amidst continuing outflows, emerging markets are much better placed than before the 1997 Asian currency crisis. “Record levels of reserves” should give “troubled countries a window for reform.” Reserves stand roughly 10 times higher than the past crisis. “While no amount of reserves can withstand the loss of market trust, money does buy time. Using reserves to offset capital flight allows central banks temporarily to avoid the classic EM crisis response of tighter monetary policy amid a recession to protect their currency and avoid imported inflation.”
Tags: Asia, Banks, Capital, Crisis, Emerging markets, Market, Monetary policy, Outflows, Recession Inflation, Reform, Reserves
