The world economy: The never-ending story

Posted: November 12, 2015 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

The never-ending story

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The world economy

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First America, then Europe. Now the debt crisis has reached emerging markets

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20151114_LDD001_0.jpg

IT IS close to ten years since America’s housing bubble burst. It is six since Greece’s insolvency sparked the euro crisis. Linking these episodes was a rapid build-up of debt, followed by a bust. A third instalment in the chronicles of debt is now unfolding. This time the setting is emerging markets. Investors have already dumped assets in the developing world, but the full agony of the slowdown still lies ahead.
Debt crises in poorer countries are nothing new. In some ways this one will be less dramatic than the defaults and broken currency pegs that marked crashes in the 1980s and 1990s. Today’s emerging markets, by and large, have more flexible exchange rates, bigger reserves and a smaller share of their debts in foreign currency. Nonetheless, the bust will hit growth harder than …

via Economic Crisis http://ift.tt/1QxkOK9

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