Save the Emerging Markets
Emerging-market countries are getting hammered in the financial markets nowadays, even though many of them learned the hard lessons of their own crisis-prone histories and took steps to strengthen their resilience. They are victims of a rational flight to safety, exacerbated by an irrational panic, and the advanced countries have a strong interest in providing the liquidity they need.
CAMBRIDGE – If the world were fair, most emerging markets would be watching the financial crisis engulfing the world’s advanced economies from the sidelines – if not entirely unaffected, not overly concerned either. For once, what has set financial markets ablaze are not their excesses, but those of Wall Street.