Emerging Market Rout May Signal ‘Sudden Stop’: Cutting Research

Posted by Ravi Gulati | Posted in Uncategorized | Posted on 31-01-2014

Brazil, South Africa, Turkey and Ukraine are the emerging markets most at risk of a “sudden stop,” in the view of Morgan Stanley.

That’s defined as a halt or even a reversal in capital flows into a country, slashing access to international financial markets for an extended period and weakening the economy. The term is often linked to 1995 work by Rudi Dornbusch, the late international economics professor at the Massachusetts Institute of Technology in Cambridge.

Emerging Market Rout May Signal ‘Sudden Stop’: Cutting Research – Bloomberg.