Citi: The most important people in finance are concerned about these four things
Citigroup Chief Economist Willem Buiter published a note on discussion among policy makers: 1.China's economy. The consensus among people Buiter spoke with was for stabilization in China in the near term, with little risk of a drastic turn for the worse before the end of the year. 2. Risk of an emerging-market crisis. Slowing growth in emerging markets has been a big theme lately, and it was no different at the meetings in Lima. The vast majority of people Buiter talked with believed that these countries are looking at a growth crisis, not a financial crisis. 3. Effects of an EM crisis on developed markets. Because growth in emerging markets has been a driver of world gross domestic product since the financial crisis, many have expressed concern about the broad impact of slowing growth in EMs. 4. Exchange rates and capital flows. As China devalued its currency and talk of so-called currency wars has emerged, exchange rates were bound to come up. Most of the people Buiter talked with were "comfortable" with the moves we have seen so far. (VIEW LINK)
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