Collapse of developed world currency is biggest risk to EMs

ON EMERGING MARKETS

First State's Jonathan Asante predicts the brutal economic events still to come

When historians write the economic history of the last 10 years, they are unlikely to be kind to central bankers.  The decade’s loose monetary policy has delivered booms and busts, rampant asset price inflation and resulted in a significant transfer of wealth from the majority to the few who own most of the assets. In many ways, this has been little different from the devaluations and hyperinflation experienced in numerous emerging economies in the past, which increased inequality and undermined civil society. However, we anticipate the most brutal event of this period is yet to oc...