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Emerging markets

Countries with functioning exchanges but greater dependence on foreign capital and thinner trading.

How to read the number

They finance themselves more expensively and lose inflows first when money in the United States gets dearer: capital moves to where the risk is lower for a comparable return.

When the metric lies

The group is heterogeneous to the point of contradiction — a commodity exporter and a commodity importer respond to the same shock in opposite directions.

Also known as: developing markets

Related terms