About this work
Market stress raised questions about contagion from Turkey to other emerging economies in April 2021. Robin Brooks and Jonathan Fortun compare the pressure with the 2013 taper tantrum and argue that stronger starting conditions limited wider spillovers. Their contemporary assessment also retained the lira fair value estimate, anticipating that tighter financial conditions would narrow Turkey’s external deficit.
Abstract
Market stress raised questions about contagion from Turkey to other emerging economies in April 2021. Robin Brooks and Jonathan Fortun compare the pressure with the 2013 taper tantrum and argue that stronger starting conditions limited wider spillovers. Their contemporary assessment also retained the lira fair value estimate, anticipating that tighter financial conditions would narrow Turkey’s external deficit.
Cite this work
Robin Brooks, Jonathan Fortun (2021). Global Macro Views: EM Contagion Risk. Institute of International Finance.