About this work
Weak US activity data and a shift in Bank of Japan policy helped trigger the August 2024 market scare. The unwinding of carry trades transmitted pressure to emerging market currencies and capital flows. Despite rising recession fears and expectations of deeper Federal Reserve cuts, the assessment retained a constructive outlook for the United States and emerging economies.
Abstract
Weak US activity data and a shift in Bank of Japan policy helped trigger the August 2024 market scare. The unwinding of carry trades transmitted pressure to emerging market currencies and capital flows. Despite rising recession fears and expectations of deeper Federal Reserve cuts, the assessment retained a constructive outlook for the United States and emerging economies.
Cite this work
Marcello Estevão, Jonathan Fortun (2024). IIF Special Report: The Market Scare and EMs. Institute of International Finance.