BIS's Carstens on China's Growth

The video discusses the challenges and risks faced by emerging markets (EMs) as advanced economies maintain a hawkish monetary policy stance. It highlights how EMs have managed to anticipate high interest rates and started their own tightening early. The video also examines the impact of China's disappointing post-COVID recovery on EMs, particularly in Asia and Latin America, and the role of the Chinese yuan in EM currencies. Additionally, it addresses fiscal and debt sustainability issues in EMs, emphasizing the importance of controlling inflation and exchange rates.

In what ways might the weakness of the Chinese yuan affect emerging market currencies?

What role does inflation control play in the fiscal and debt sustainability of emerging markets?