Emerging Markets’ Euro Nemesis

A few years ago, when the US Federal Reserve embarked on yet another round of “quantitative easing,” some emerging-market leaders complained loudly. But the real reason why capital flowed into emerging markets over the last few years, and why the external accounts of so many of them have swung into deficit, is the euro.

BRUSSELS – Emerging markets’ currencies are crashing, and their central banks are busy tightening policy, trying to stabilize their countries’ financial markets. Who is to blame for this state of affairs?

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