An Emerging Market Crisis Would Have A Larger Impact Than In The 90s

The emerging market crises of the late ’90s had a number of different causes ranging from cheap credit and excessive foreign investment to straightforward mismanagement, but as Societe Generale analyst Michala Marcussen points out, tightening Fed policy often served as the catalyst to set off a crisis. The next FOMC meeting is just around the corner, and most analysts expect the Fed to continue as planned and taper to purchases to $65 billion, but this time around an emerging market crisis would have a bigger impact on the global economy. “The second half of the 1990s was shaped by a…