Economics

The Same Stimulus That Rich Countries Lean On Could Worsen Poor Economies

Capital flight faster now than pace in global financial crisis
Debt levels may prove unsustainable for some, JPMorgan warns

Workers disinfect a street surrounding a hospital in Niteroi, Rio de Janeiro state, Brazil, on March 30. — Workers disinfect a street surrounding a hospital in Niteroi, Rio de Janeiro state, Brazil, on March 30.
Photographer: Dado Galdieri/Bloomberg

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By Enda Curran and Michelle Jamrisko

April 1, 2020 at 9:00 PM UTC

Updated on

April 2, 2020 at 2:37 AM UTC

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A massive exodus of capital from emerging economies has left many in a Catch-22 position: the kinds of monetary and fiscal stimulus measures that the rich world is deploying could perversely make things worse.