The New Financial Landscape : What It Means for Emerging Market Economies
As the year 2012 unfolds, its main legacy will be its game changing impact on global financial markets. Waning global growth along with central banks' bold monetary easing policies in advanced economies (AEs) to try to reverse it are changing...
| Main Authors: | , , |
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2012/09/16706673/new-financial-landscape-means-emerging-market-economies http://hdl.handle.net/10986/17090 |
| Summary: | As the year 2012 unfolds, its main
legacy will be its game changing impact on global financial
markets. Waning global growth along with central banks'
bold monetary easing policies in advanced economies (AEs) to
try to reverse it are changing market dynamics in unexpected
ways, across both AEs and emerging market economies (EMEs).
The combination of monetary stimulus, fiscal austerity and
hesitant structural economic policy reforms in AEs,
particularly in Europe, is taking the global financial
system into increasingly uncharted territory. How the
European Union will address the future of the euro zone,
including uncertainties over its banking sector, as well as
how the United States handles its Fiscal Cliff, will weigh
heavily on economic balances across all economies worldwide.
This seems to be a significant point of inflection on the
speed of the rebalancing of economic relevance of AEs in
favor of EMEs taking place over the last 12 years. Under
this scenario, the ability of EMEs to handle their own
fiscal, financial, and real economy weaknesses is critically
tied to their ability to weather external shocks and take
advantage of growing global savings while searching for
yield and growth opportunities. |
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