Argentina is no danger to the world - but the eurozone is
For the world economy, there is always some wretched fly in the ointment. Just as developed countries start to put the financial crisis behind them, along comes another bout of jitters in emerging markets, the immediate cause of which, ironically, is an attempt by the US Federal Reserve to restore more “normal” monetary conditions. The world cannot easily rid itself of its addiction to money printing.
As the Fed eases back on monetary support for its own economy, countries as diverse as South Africa, Turkey, Argentina and India are being forced to jack up interest rates to defend their currencies from capital flight.… Seguir leyendo »