Emerging Markets: Prospects and Challenges
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Summary:
This article documents recent developments in emerging markets in the context of the COVID-19 pandemic, assesses their prospects and challenges, and discusses appropriate policy settings for the medium term. It argues that EM policymakers’ ability to grapple with an incomplete and uneven recovery will be constrained by high public debt and uncertain inflation prospects as well as external risks surrounding capital flows and exchange rate developments. The paper also discusses potential impact of a tightening in global financial conditions and appreciation of the US dollar that could be triggered by a general increase in risk aversion or a reassessment of the likely path of US monetary policy.
Series:
Working Paper No. 2022/035
Subject:
COVID-19 Emerging and frontier financial markets Exchange rates Financial markets Foreign exchange Health Inflation Prices Public debt
Frequency:
regular
English
Publication Date:
February 18, 2022
ISBN/ISSN:
9798400203954/1018-5941
Stock No:
WPIEA2022035
Pages:
22
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