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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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.