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February 2011

QE2 and Emerging Markets

Jamus Lim's picture

America's latest round of quantitative easing---also known as QE2---set sail a few months back, and its departure (or arrival, depending on one's point of view) ushered in approbrium from much of the developing world's central bankers and ministers of finance. In their view, the move is an underhanded way of depreciating the U.S. dollar; indeed, this has already occurred, at least as far as the USD/EUR rate is concerned (see figure).

Prospects Daily: PMI for U.S. and Europe show stronger factory- and services activity in January

Global Macroeconomics Team's picture

Important developments today:

1. U.S. Treasury prices slip after favorable unemployment claims data

2. U.S. initial claims for unemployment insurance fall in latest week

3. ISM survey of U.S. services industries for January showed that activity expanded at the fastest pace since 2005

 

Developing countries pass stress-test of financial crisis with flying colors

Andrew Burns's picture

Developing countries are estimated to have grown by 7 percent in 2010, and growth is projected to come in at 6 and 6.1 percent in 2011 and 2012 (see Global Economic Prospects, January 2011) – more than twice as fast as high-income countries.  This return to very strong growth rates appears to confirm that the acceleration of growth that occurred during the late 1990s and into the early 2000s was indeed the result of improved fundamentals following years of structural reform, and not, as some had argued, an unsustainable reflect