Communication in Economics Essay Example | Topics and Well Written Essays - 250 words

Communication in Economics - Essay Example It is quite apparent that currencies and stock markets in emerging economies particularly in countries such as South Africa, India, Turkey and Indonesia among others got affected as several investors are starting to pull back their funds from the emerging economies due to financial fluctuations. According to the report, the US Federal Reserve has scaled back nearly US$85 billion from the developing nations during the period of August’ 2013 (Catan, Anand and Murphy, â€Å"In Turmoil, Emerging Markets Raise Rates†). It can be apparently observed in this recent times that India’s Rupee, Brazil’s Real, Turkey’s Lira and Indonesia’s Rupiah have fallen considerably against US Dollar. In this regard, the investors are presently hastening to purchase dollar because of the expectation that the US will start to cut the monetary stimulus. Due to this reason, emerging markets or economies are increasing the interest rates with the intention that this might assist in stanching the massive outflow of funds through making the assets of the developing nations more attractive especially for the investors (Akhtar, â€Å"Pressure Building on Emerging Markets†). Catan, Thomas, Shefali Anand and Tom Murphy. In Turmoil, Emerging Markets Raise Rates. The Wall Street Journal, 2013. Web. 01 Sep. 2013