, Columnist
Emerging-Market Investors Have Some Memory Issues
Remember what happened the last time global liquidity tightened?
Sooner or later, something bad happens to bubbles.
Photographer: Bettman/ContributorThis article is for subscribers only.
If you're ever looking for examples of hope triumphing over experience, look no further than the emerging-market economies.
Even as the Federal Reserve tightens U.S. monetary policy, both investors and policymakers in those economies seem to be in denial about the likely fallout, clinging to the hope that somehow the impact of this round of global liquidity tightening will be less disastrous than earlier such rounds.