Macquarie: Emerging Markets Are Not Facing a 1997-Style Crisis—They're Facing Something Worse
"A far more painful and insidious process."
Are Emerging Markets Close to a Crisis?
This article is for subscribers only.
If the 1997 Asian financial crisis was a heart attack for emerging markets, the current situation is akin to chronic cardiovascular disease, according to Macquarie analysts led by Viktor Shvets and Chetan Seth.
In 1997, speculative attacks against the Thai baht forced the country to float and devalue its currency in a move that was swiftly followed by the Philippines, Malaysia, Singapore, and Indonesia. Then came a massive decline in Hong Kong's stock market that led to losses in markets around the globe.