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Indian currency notes of different denominations are seen in this file picture illustration taken in Mumbai on April 30, 2012. India raised import taxes on gold and silver on Aug. 13, 2013, as policy makers scrambled to narrow a gaping current account deficit.
Indian currency notes of different denominations are seen in this file picture illustration taken in Mumbai on April 30, 2012. India raised import taxes on gold and silver on Aug. 13, 2013, as policy makers scrambled to narrow a gaping current account deficit.
(VIVEK PRAKASH/REUTERS)

Emerging markets: Rising importance makes crisis less likely

Think emerging market economies are two small to worry about? Think again. Think the turbulence within emerging markets is going to affect the global economy? Think again, again.

Okay, that’s a lot of thinking. But Ed Yardeni at Yardeni Research makes the point that emerging markets aren’t what they used to be: “The last major emerging markets crisis was in 1997, when East Asian economies had a financial meltdown, and again in 1998, when Russia hit the fan. But collectively, they were relatively tiny and had no significant impact on the U.S. and global economies.”