Lo que un nuevo presidente de la Fed podría significar para los mercados emergentes

The transcript discusses the potential impact of Mr. Taylor's confirmation on emerging market (EM) debt, highlighting concerns about his hawkish stance and its implications for interest rates. It explores the evolving relationship between US monetary policy and EM financial assets, noting a shift towards domestic debt issuance. The discussion also covers how US interest rates affect EM markets, including term premiums and currency fluctuations. Finally, it examines the price and income effects in economics, emphasizing the role of US and global economic growth in EM performance.

What was the main concern regarding Mr. Taylor's potential impact on emerging markets?

• He could focus too much on emerging markets.

• He might ignore global monetary policies.

• He could be too hawkish, leading to higher rates.

• He might be too lenient with monetary policy.

How has the relationship between US monetary policy and emerging market financial assets changed over the years?

• Emerging markets are now more dependent on dollar funding.

• Emerging markets have reduced their dependency on dollar funding.

• Emerging markets have stopped issuing domestic debt.

• US monetary policy no longer affects emerging markets.

What is the immediate effect of US interest rate increases on emerging markets?

• It causes a sell-off in rates and currencies.

• It strengthens emerging market currencies.

• It has no effect on emerging markets.

• It boosts emerging market economies.

What is the longer-term effect of US interest rate changes if the global economy grows?

• US markets will dominate.

• Emerging markets will perform well.

• Emerging markets will underperform.

• Interest rates will remain unchanged.

What are the two effects discussed in relation to US interest rate changes?

• Supply effect and demand effect.

• Price effect and income effect.

• Growth effect and recession effect.

• Inflation effect and deflation effect.