The intention of the US Federal Reserve to accelerate the interest rate hike due to higher inflation and a widening US budget deficit has triggered capital outflows from emerging markets to the United States. As a result, emerging market currency exchange rates have weakened dramatically and stock and bond markets have been hard hit.

The intention of the US Federal Reserve to accelerate the interest rate hike due to higher inflation and a widening US budget deficit has triggered capital outflows from emerging markets to the United States. As a result, emerging market currency exchange rates have weakened dramatically and stock and bond markets have been hard hit.

It has been over three months since the November 2016 surprise demonetisation of 86 per cent of India’s currency in circulation. The short-run costs of the measure are becoming clearer. India’s industrial production sector, for instance, has been hit hard with negative growth in December 2016. Overall, the aggregate growth cost of the demonetisation measure is expected to be up to 1 per cent of GDP.

It has been over three months since the November 2016 surprise demonetisation of 86 per cent of India’s currency in circulation. The short-run costs of the measure are becoming clearer. India’s industrial production sector, for instance, has been hit hard with negative growth in December 2016. Overall, the aggregate growth cost of the demonetisation measure is expected to be up to 1 per cent of GDP.

Despite major domestic and external challenges, Indonesia is expected to grow at around 5 per cent again this year — much like last year — and only slightly below the official estimate of 5.3 per cent but much lower than the 7 per cent the new government had targeted. Compared to continued downward global growth, including that of China and its ASEAN neighbours, Indonesia’s stable growth looks quite respectable.

Despite major domestic and external challenges, Indonesia is expected to grow at around 5 per cent again this year — much like last year — and only slightly below the official estimate of 5.3 per cent but much lower than the 7 per cent the new government had targeted. Compared to continued downward global growth, including that of China and its ASEAN neighbours, Indonesia’s stable growth looks quite respectable.

Economics is imprecise, and so are predictions made by economists. In the early 2000s, renowned economists argued that the so-called ‘US twin deficits’ were unsustainable, and predicted that a crisis accompanying a free fall of the US dollar was imminent. In the end, a major crisis did originate from the United States in 2008. But it was not a balance of payments or fiscal crisis, and in its aftermath, we saw a sharp appreciation of the dollar.

Economics is imprecise, and so are predictions made by economists. In the early 2000s, renowned economists argued that the so-called ‘US twin deficits’ were unsustainable, and predicted that a crisis accompanying a free fall of the US dollar was imminent. In the end, a major crisis did originate from the United States in 2008. But it was not a balance of payments or fiscal crisis, and in its aftermath, we saw a sharp appreciation of the dollar.

There is never a dull moment in China’s property market. In August, surging demand led to scores of people lining up to file divorce applications in Shanghai because separated couples can buy more houses. Then in the first week of October, Chinese cities rolled out new measures to cool the home buying frenzy that has seen prices skyrocket, marking a new round of tightening since policies were eased two years ago.

There is never a dull moment in China’s property market. In August, surging demand led to scores of people lining up to file divorce applications in Shanghai because separated couples can buy more houses. Then in the first week of October, Chinese cities rolled out new measures to cool the home buying frenzy that has seen prices skyrocket, marking a new round of tightening since policies were eased two years ago.