Based on inflation, unemployment, growth weakness, and cost of capital, Goldman notes that emerging market’s “macro-misery” indices have pushed back to post-financial-crisis highs.
It is hardly a surprise that macroeconomic hardship is surging since in the 15 years since the EM sovereign bonds have been liquid, levels remain extremely elevated, despite the mainstream-media’s relegation of the problem.
As Bank of Mexico’s Agustin Carstens warns, “we cannot rule out the event that some advanced economies run into deeper trouble again… the world economy is still in a fragile situation.”
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