(FINANCIAL TIMES) - From the start of the coronavirus pandemic, many emerging nations watched the United States and other large developed countries "go big" on economic stimulus, and wished they could afford to follow. It turns out they were lucky if they couldn't and wise if they chose not to.
Emerging markets that stimulated most aggressively received no pay-off in a faster recovery, owing in part to the downsides of overindulging. The big spenders tended to suffer higher inflation, higher interest rates and currency depreciation, at least partly cancelling out the sugar high of stimulus.
Already a subscriber? Log in
Read the full story and more at $9.90/month
Get exclusive reports and insights with more than 500 subscriber-only articles every month
ST One Digital
$9.90/month
No contract
ST app access on 1 mobile device
Unlock these benefits
All subscriber-only content on ST app and straitstimes.com
Easy access any time via ST app on 1 mobile device
E-paper with 2-week archive so you won't miss out on content that matters to you