The US Fed’s Aggressive Monetary Policy Tightening and New Headwinds for Emerging Markets


Source: thewire.in thewire.in

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As the COVID-19 pandemic enters its third year, emerging market economies (EMEs) will continue to struggle to improve their financial resilience in the face of numerous domestic and global headwinds. In 2022, these economies will face difficulties managing macroeconomic and financial stability in a highly unsettled global economic environment. This year, EMEs will continue to grapple with higher food and energy prices, persistent inflationary pressures and supply chain disruptions. Even if the global economy performs broadly in line with expectations, EMEs will face new challenges this year in bolstering their growth impulses and overcoming financial vulnerabilities. This year, three significant...