Is China Behind the Emerging Market Financing Crunch?

Is China Behind the Emerging Market Financing Crunch?
A Chinese day trader reacts as he watches a stock ticker at a local brokerage house on August 27, 2015 in Beijing, China. Kevin Frayer/Getty Images
Valentin Schmid
Updated:

Can an economist be a celebrity? Usually not.

There are a few exceptions and Carmen Reinhart is one. Certainly after her book “This Time Is Different“ came out in 2009.

“Carmen Reinhart and Ken Rogoff came as close to celebrity status as an economist can ever come,” wrote professor Randall Wray.

Why the unusual attention? The answer is what they got right in the punchline of their book: Although contemporaries may say this time is different, financial crises follow historical patterns. Reinhart and her co-author Kenneth Rogoff analyze these patterns over 800 years and find when crisis hits it’s not much different from the last time around.

China's footprint in emerging markets is big, not just from the trade side.
Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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