The emerging market economies in times of taper-talk and actual tapering

Federico Diez

No 14-6, Current Policy Perspectives from Federal Reserve Bank of Boston

Abstract: The emerging market economies (EME) experienced financial distress during two recent periods, both linked to the prospect of the Federal Reserve starting to slow its asset purchases. This policy change was expected to reverse the capital flows directed to the EME. Despite this aggregate effect, a closer analysis shows that there were significant differences across the EME during the time when talk of the upcoming taper began and the period when the policy was implemented. The author makes use of the literature on currency crises to analyze the different cross-country responses and to identify a potential crisis period in the near future, defined as the next 24 months.

Keywords: emerging markets; exchange rates; currency crises (search for similar items in EconPapers)
JEL-codes: F31 F32 F41 F42 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2014-11-14
New Economics Papers: this item is included in nep-cba, nep-mon and nep-opm
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbcq:2014_006

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