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 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.

Bibliographic Details

Main Authors:	Canuto, Otaviano, García-Kilroy, Catiana, Caputo Silva, Anderson
Format:	Brief biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-09
Subjects:	ADVANCED ECONOMIES, ASSET CLASS, ASSET PRICING, ASSETS, BAILOUTS, BALANCE SHEETS, BANK BALANCE SHEETS, BANKING SECTOR, BASIS POINTS, BOND FLOWS, CAPITAL ALLOCATION, CAPITAL FLOWS, CENTRAL BANK, CENTRAL BANKS, COMMODITIES, COMMODITY, COMMODITY EXPORTS, COMMODITY PRICE, COMMODITY PRICES, CREDIT RATINGS, CURRENCY, CURRENCY APPRECIATION, DEVELOPING ECONOMIES, DISTORTIONS, DOMESTIC DEMAND, ECONOMIC CONDITIONS, ELMI, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET ASSETS, EMERGING MARKET BONDS, EMERGING MARKET ECONOMIES, EMERGING MARKETS, EQUITIES, EQUITY INDEX, EQUITY MARKETS, EQUITY RETURNS, EXCHANGE RATE, EXCHANGE RATES, EXPORTERS, EXPOSURE, EXTERNAL FACTORS, EXTERNAL SHOCKS, FINANCIAL CRISIS, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SYSTEM, FISCAL IMBALANCES, FOOD PRICES, FOREIGN EXCHANGE, FOREIGN RESERVES, GLOBAL ECONOMY, GLOBAL FINANCIAL MARKETS, GLOBAL FINANCIAL STABILITY, GLOBAL FINANCIAL SYSTEM, GLOBAL LIQUIDITY, GOLD, GOVERNMENT BOND, GOVERNMENT BOND YIELDS, GOVERNMENT BONDS, GOVERNMENT DEBT, GROSS DOMESTIC PRODUCT, HARD CURRENCY, HOLDING, HOLDINGS, INCOME, INCOME FLOWS, INFLATION, INSURANCE, INSURANCE COMPANIES, INTEREST RATES, INTERNATIONAL ECONOMICS, INVESTMENT ALLOCATIONS, LIQUIDITY, LIQUIDITY FACILITIES, LIQUIDITY REQUIREMENTS, LOCAL CURRENCY, LONG-TERM YIELDS, MACROECONOMIC POLICY, MARKET DYNAMICS, MARKET SPECIALIST, MONETARY CONDITIONS, MONETARY FUND, MONETARY POLICIES, PORTFOLIO, PORTFOLIO ALLOCATIONS, POTENTIAL INVESTMENTS, POVERTY REDUCTION, PRICE INDEX, PRIVATE SECTOR DEVELOPMENT, RESERVE, RESERVES, SAVINGS, SECURITIES, SECURITIES MARKET, SECURITIES MARKETS, SOVEREIGN DEBT, STRUCTURAL REFORMS, SUSTAINABLE GROWTH, TAX, TRADING, UNCERTAINTIES, UNCERTAINTY, VALUATION, VOLATILE CAPITAL, VOLATILITY, VOLATILITY OF CAPITAL, YIELD CURVES,
Online Access:	http://documents.worldbank.org/curated/en/2012/09/16706673/new-financial-landscape-means-emerging-market-economies http://hdl.handle.net/10986/17090
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