6/20/2013

The Federal Reserve's stimulus policies had the indirect effect of sending huge amounts of capital to emerging markets, and that process is now reversing as the central bank signals its intention to taper off stimulus, according to The Economist. Although the change benefits emerging market exporters, it doesn't come without some pain. "Export-led growth is not nearly as much fun as a consumer boom spurred by cheap foreign credit and a dear currency," the magazine notes.

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