George Magnus: We should take the emerging markets volatility seriously

George Magnus is one of the few economists that could reasonably claim to have predicted the financial crisis which began in 2007. And last night, he spoke with great concern about the budding crisis now ongoing throughout the emerging markets. I have posted the video below but I want to make a few comments about the discussion before you watch it.
I have written about the EM crisis for subscribers and I see three proximate triggers. First is what I am calling the slowing of Chinese growth and the rout in commodity currencies. Second are the macro imbalances and political weaknesses in several emerging markets like Argentina and Turkey. And third is the normalization of monetary policy in developed economies.
My view here is that people are paying far too much attention to the third caus...


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