With the Fed set to raise interest rates later this year, will that lead to contagion and higher rates in the rest of the world? Emerging markets may be worried as they are potentially the most exposed to US monetary policy. The taper tantrum in 2013 showed how disruptive a US tightening could be for some emerging markets. Will a Fed hike lead to a repeat of those tensions?
About the authors
Economist Insights is written by Joshua McCallum and Gianluca Moretti. Joshua has been working at Global Asset Management with the title of Senior Fixed Income Economist since 2005. Prior to this, he worked at the UK Treasury as a macroeconomist. Gianluca joined Global Asset Management in 2010. Prior to this he worked at the Italian central bank.
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