El-Erian: Russias Rating Will Be Downgraded to Junk

The video discusses the divergence between the US economy, which is growing, and other global economies that are slowing down. This divergence leads to different monetary policies in advanced economies, affecting emerging markets with increased currency volatility. The video also examines Russia's economic challenges, including its potential downgrade to junk status due to insufficient reserves, and the pressures on its currency and economy. Russia faces decisions on whether to re-engage with the West to stabilize its economy.

What factors contribute to the volatility of currencies in emerging markets?

What decisions might Vladimir Putin have to make regarding Russia's engagement with the West?