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Article: GLOBAL ECONOMIES STILL RISE AND FALL TOGETHER; Volatility illustrates how emerging markets now influence their developed counterparts.(News)
- Article from:
- Investment News
- Article date:
- November 9, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Thao Hua
EXPERTS HAVE SAID FOR years that emerging markets were breaking free of their lock-step movement with developed markets.
But the market crisis changed that view. Although few think that emerging markets are as dependent on developed economies as they were 10 to 15 years ago, these developing economic engines aren't yet strong enough to pull the world or even themselves in some cases out of recession on their own.
But contagion goes both ways, and developed economies at least sneeze, if not fall ill themselves, when emerging markets catch a cold.
"The decoupling argument is [based on] a historical view that dictates ...