Emerging-Market Debtor Nations Likely to Follow Fed Rate Boosts
4 Pages Posted: 29 Mar 2016
Date Written: 2016
Abstract
A Federal Reserve interest rate increase can lead to capital flows reversing and exiting emerging markets. Central banks in emerging markets that are highly dependent on outside capital will be tempted to match the Fed increase in an attempt to curb capital flight.
Suggested Citation: Suggested Citation
Davis, Scott, Emerging-Market Debtor Nations Likely to Follow Fed Rate Boosts (2016). Economic Letter, Vol. 11, Issue 1, pp. 1-4, 2016, Available at SSRN: https://ssrn.com/abstract=2755915
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