EM Troubles Getting More Worrying, Says Deutsche Bank's Goel

The video discusses the challenges faced by emerging markets due to the Fed's tightening of liquidity, highlighting the pressures on markets with current account gaps. It explores the contagion effects and illiquidity issues, emphasizing the importance of policy reactions. The Philippine inflation situation is examined, noting the central bank's response. The discussion concludes with a focus on market fundamentals and the impact of contagion, particularly in Asia.

What is one of the main challenges faced by emerging markets due to the Federal Reserve's actions?

• Tightening of dollar liquidity

• Rise in local currency value

• Decrease in export demands

• Increased foreign investments

How does contagion typically spread in emerging markets?

• Through improved trade agreements

• By rising commodity prices

• Via cross-holdings and redemption pressures

• Through increased foreign aid

What role do central banks play in managing economic challenges in emerging markets?

• They set global interest rates

• They act as circuit breakers

• They control international trade policies

• They manage foreign exchange reserves

What recent economic issue has the Philippines been facing?

• Currency appreciation

• High inflation

• Deflation

• Trade surplus

What is a critical factor for the Philippines' central bank in addressing inflation?

• Staying ahead of the curve

• Devaluing the currency

• Increasing foreign reserves

• Reducing interest rates