Emerging Marktes MIght Be Wasting Taper Reprieve

After several months of market volatility, emerging markets were given a respite when the U.S. Federal Reserve decided to delay tapering its asset purchases, but some may be squandering the chance to address economic reform.

“An improvement in government finances would leave countries less vulnerable to future bouts of market turmoil. It would also give them more scope to counter future economic downturns,” said Krystal Tan and Daniel Martin, economists at Capital Economics, in a note.

“Some of the governments that most need to rein in their deficits to help their economies withstand future bouts of market volatility are showing the least willingness to do so,” they said, citing India and Thailand.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza