Latin America: Macro Is Back(Morgan Stanley)
Macro Is Back
November 19, 2008 (Morgan Stanley)
By Daniel Volberg & Gray Newman | New York
The era of abundance – that heady windfall of inflows that boosted growth, fiscal coffers, international reserves, currencies and asset prices – ended this year for emerging markets. With the collapse in abundance, investors have scurried to look for vulnerabilities – whether they be large current account imbalances or the financing needs of the domestic banking system. All of a sudden, the old metrics designed to measure liquidity and solvency are back in vogue.