Spillovers to emerging markets still a reality

The current global financial crisis shows that the notion of possible decoupling of financial markets in developed and emerging economies has been misplaced, a new paper from the International Monetary Fund posits.

The research shows that during the recent period of financial turbulence both the dollar Libor-OIS spread, a proxy of interbank money-market pressure, and the credit default swaps spreads indices for some selected emerging-market countries, and a measure of bank solvency, became more

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