Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Boston
Current Policy Perspectives
The emerging market economies in times of taper-talk and actual tapering
Federico J. Diez

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.

Download Full text
Cite this item
Federico J. Diez, The emerging market economies in times of taper-talk and actual tapering, Federal Reserve Bank of Boston, Current Policy Perspectives 14-6, 14 Nov 2014.
More from this series
JEL Classification:
Subject headings:
Keywords: currency crises; exchange rates; emerging markets
For corrections, contact Catherine Spozio ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal