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How Vulnerable Is Emerging Market Debt to Fed Tapering in 2022?
Will emerging markets be able to cope when the Federal Reserve starts tapering its asset purchases? In this excerpt from their recent topic paper, our Franklin Templeton Fixed Income team explores reasons why they think emerging markets are in good shape to weather monetary policy changes in 2022.
Our fixed income team analyzes inflation trends across emerging markets, highlighting the vast heterogeneity across regions and countries. They acknowledge that a large part of the reflation story is linked to low base effects from 2020, which are transitory.
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