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Signs of Crisis in Emerging Markets: Markets in a Lull

Lyudmila Gadiy – Junior Research fellow of the Center for the Study of Central Banks, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Anna Kiyutsevskaya – Research fellow of the Monetary Policy Department of the Gaidar Institute; Senior Research fellow of the Center for the Study of Central Banks, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Pavel Trunin – Head of Center for Macroeconomics and Finance of the Gaidar Institute; Leading Research fellow of the Center for the Study of Central Banks, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maria Sherbustanova – Junior Research fellow of the Monetary Policy Department of the Gaidar Institute. E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

US Fed’s monetary policy tightening has induced capital outflows from emerging economies, inducing, coupled with internal problems, serious financial instability in the markets of Turkey and Argentina. Central banks have launched policies to arrest the plunge in the markets of developing countries. The achieved market stability may be short-lived, however.

Key words: United States FED, emerging markets, central banks of developing countries, financial instability, capital flight.