This shift is unlikely to be reversed unless there is a major unexpected change in policies: while stronger financial regulation will further increase demand for safe assets, a reduction in both emerging market economy
saving and the pace of official reserve accumulation would work the opposite way, although the net effect is likely to be small.
Emerging market economy banks are better capitalised, rely more on deposits and less on debt, and have lower funding gaps (loan-to-deposit ratios), all of which are desirable features for a more resilient bank.
In general, the already-higher capitalisation and greater reliance on deposits should support emerging market economy banks' transition to Basel III.
In an emerging market economy case, the potential effect of the policy on the domestic real interest rate, throughout the reduction of the country risk premium, points to a visible link between the policy and its hypothetical positive indirect effects.
An investor has to evaluate both the prospects of the capital flows and the ability of the country to make necessary adjustments in the external accounts (in an emerging market economy case) and in the public accounts (in both emerging market economy and Eurozone cases).
And Brazil is hardly the only emerging market economy
that would seem to have moved towards a convergence path over the past few years.
If the preponderance of a country's liabilities are short term, the entire burden of a crisis would fall on the emerging market economy
in the form of a run on reserves.
The continuity of sound macroeconomic policies through personnel changes is critical to improving sovereign creditworthiness in an emerging market economy
such as Brazil,' said Roger Scher, Managing Director, Latin American Sovereigns, Fitch Ratings.
The three major partners in the contract see the project as an excellent vehicle to provide needed redeployment opportunities for people and support for the emerging market economy
Peter Windsor, National Power's International Business Development Director, said: "This is an exciting and challenging investment in the electricity industry of Kazakhstan, a country with an emerging market economy
These energy companies will be part of the future emerging market economy
in China and should enable Kaihua to expand easily as the power demand increases.