Emerging Market Bubble Trouble

ROME â?? Some of the developing worldâ??s larger countries, flush with capital after being recognized by investors as â??emerging-market economiesâ? (EMEs), have been pursuing policies with little regard for the lessons of the financial crises of 1997-1998 and 2008-2009. As a result, countries like India, Brazil, South Africa, and Indonesia have been hit by the US Federal Reserveâ??s gradual exit from so-called quantitative easing (QE) â?? not just capital-flow reversals, but also a sharp decline in domestic asset prices.