Special issue of the singapore economic review - Economic, financial and policy challenges in emerging economies

Since the eruption of the global crisis, world has been experiencing rather unusual days in its history. Crises literature was often associated with the developing countries and the developed economies were tacitly assumed to be immune to any major turmoil due to their intrinsic economic and organizational structures. However, the last global crisis has radically altered this conventional conception of the developed and developing economies. It is now more apparent that each and every country regardless of how they are classified like developed, developing, emerging etc. has distinguishing features and characteristics which make it more difficult to categorize them with respect to the old formulas. This result is especially valid for the emerging market economies. These countries have been affected differently during the initial phase of the crisis in 2008 when the flight to quality was toward developed countries. Similarly, emerging market economies have been influenced differently during the various episodes of the quantitative easing trails of the central banks of the developed countries. Apparently today also, emerging market economies seem to have been affected differently from the FED's tapering policies since May 2013.