Why India's Surprise Rate Hike May Lead To The Next Emerging Market Crisis

In his take on the RBI's surprise decision, Bloomberg macro commentator Srinivasan Sivabalan writes that after today's rate hike, "the turmoil that has moved from one emerging-market currency to another this year (Argentina, Turkey, Indonesia and now Brazil) is threatening to claim India as the next victim." Specifically, the economist envisions the "familiar coming together of economic doubts and political risks" and lists the following three risk factors which may see the EM contagion spread to the world's second most populous nation.




David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.