BRIAN KANTOR: Must there be a different playbook for emerging economies?
Poorer economies, such as our own, which have suffered even more damage from the lockdowns, need all the unconventional help they can get
It seems that investors in emerging markets would hold their governments and central banks to a much higher fiscal and monetary standard than is expected of their highly indebted developed market peers. What is deemed so right for the increasingly indebted developed world hoping to recover from the coronavirus — that is huge doses of extra government spending and money creation in support of government debt — is treated with suspicion when proposed or attempted by increasingly indebted emerging market economies, including SA.
We have argued that poorer economies, such as our own, that have suffered even more damage from the lockdowns, given much more widespread poverty and absent reserves of capital of accumulated by most households and businesses, need all the unconventional help they can get...