It probably wouldn't be fair to say that Indonesia is at the "center" of the storm when it comes to emerging market turmoil, but it's not a stretch to say they're under a whole lot of pressure.
Acute, idiosyncratic flareups in Turkey and Argentina should always be viewed through the lens of broader EM vulnerability to a rollback of post-crisis accommodation by developed market central banks.
Back in May, at an IMF/SNB event, Jerome Powell insisted that emerging economies should prove to be resilient in the face of Fed tightening. Some EM policymakers beg to differ. For instance, the RBI's Urjit Patel and Bank Indonesia's Perry Warjiyo have both implored the Fed chair to be mindful that his actions have consequences and that some of the dynamics at play in the U.S. (e.g., Fed balance sheet rundown playing out against a supply deluge to finance the GOP tax cuts) seem to be underappreciated by the FOMC when it comes to the potential for sapping dollar liquidity at a delicate time.
Some developing economies are more vulnerable than others, but the entire EM complex benefited from the hunt for yield catalyzed by a decade of DM accommodation that pushed investors out the risk curv
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