Since the beginning of 2018, currencies of two large emerging-market economies – Argentina and Turkey – suffered from substantial depreciation. Other currencies also recorded losses. Which factors are determining macroeconomic and financial stability in emerging-market economies? And what can be done to prevent a crisis and avoid its economic, social and political costs?
Argentina has abruptly called on the International Monetary Fund for financial help, amid currency pressures. We review recent economists’ position on this.
The epic battle between Argentina and a group of U.S. hedge funds illustrates a fundamental flaw in the sovereign bond market: There's no orderly, well-established way for financially troubled governments to get relief from their creditors.