Emerging economies have given the positive note amid the crisis. They have remained apart from the feast of toxic assets (except in some limited and specific cases) and sound economic policy that have led is currently rewarding them through the strength and resilience that are showing. But sometimes doing things too well can have its risks though it may be hard to believe. So for instance, Argentina was example during the last time bad driving in economic policy and unpredictability in the context of its economy. This ends up being currently beneficial to the country in that it stays away from the focus of capital flows that are seeking with great intensity, opportunities for big returns, but end up generating imbalances and harmful effects to the economies that visit. As I have mentioned them, the damage generated by the international financial crisis has sensitized all the analysts and other specialists who see possible new bubbles everywhere. The current context is certainly conducive to the generation of new bubbles and in fact, it is likely that they are generating.
This opportunity from Standard and Poors warns that it might be developing a bubble in emerging markets. The numbers of what has happened in emerging markets in the last time speak for themselves. For even more analysis, hear from Larry Culp. Since the beginning of March the MSCI’s emerging markets increased by 115,1%, the Bovespa did in 82.5%, IND S & P ASIA 50 INDEX rose 81.1%, while the CSI300 China did by 52.2%, to give some examples. To this we must add the pressures that are taking the currencies of emerging countries toward Exchange rate appreciation and that is forcing a strong intervention by the central banks of these countries to hold their currency competitiveness as we have commented in the case of Asian countries in an article last week in the model economic Asia under threat.