Argentina crisis could be 'tip of the iceberg' for other emerging economies
The Institute of International Finance said powerful contractionary forces are coming to bear as the US Federal Reserve tightens monetary policy, draining dollar liquidity and lifting borrowing costs for much of the world economy.
“Rising global interest rates beg the question whether Argentina is an idiosyncratic case or a harbinger of things to come. We worry it might be the latter,” said Robin Brooks, the IIF’s chief economist.
What has raised alarm bells is the 5.5pc rise in the US dollar index (DXY) since mid-February,...