10 years of financial crisis: Ghost of Lehman haunts emerging markets again

The third part of the multi-part series on the 10th anniversary of the fall of Lehman Brothers looks at the impact on markets globally and in India

Lehman Brothers
Lehman Brothers (Photo: Reuters)

The   flood of liquidity that supported the global financial system after the fall of Lehman Brothers has turned into a pain-point for emerging markets (EMs) 10 years later. Tightening liquidity conditions in developed markets (DMs) has raised the spectre of EM outflows, contributing to a rout which has seen the Turkish lira and the Argentine peso fall over 40 per cent and the Indian rupee hit a record low by going past the 72-mark against the dollar. “We believe that the collapse in EM asset prices is driven by uncertainty regarding US monetary ...