A Bumpy Ride for Emerging Markets

In a recent column for Project Syndicate, Advisory Council Member Laura D’Andrea Tyson discussed why capital flows to emerging markets has slowed recently. She wrote that declining growth and “policy missteps,” combined with signs that the U.S. Federal Reserve will start tightening monetary policy have led to sell-offs in emerging markets, and notes that the trend is “a harsh reminder of an inconvenient truth: when the Fed tightens monetary policy to manage macroeconomic conditions in the US, there are large unintended spillover effects on capital flows to emerging markets.” To read the full piece, click here.