Emerging Market Turmoil Business & Marketing Case Study (Case Study Sample)

Emerging Market Turmoil
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Abstract
The issue of emerging market turmoil worries investors around the world as it may pose threats to the economies of even stable countries. The focus of the paper is on Asian, European, and Latin American countries that experienced turmoil and contracting economies such as Indonesia, Pakistan, Turkey, and Argentina that were adversely affected. Their falling currencies and the decision of central banks to raise the interest rates escalated the market turmoil of these economies due to the strict monetary policies set by the US. Raising interest rates and seeking a bailout from IMF by these countries led to increased debts, hence current account deficit. Thus, the policies adopted by these states to constrain the market turmoil brought certain benefits in the short run but proved to be ineffective for their economies in the long run.
Introduction