EM Rates: Inflation, FX Pass-Through, and When Central Banks Pivot
Previous: EM Rates and the Fed Cycle
In the first half of this chapter, we talked about how the monetary policy cycle works in EM and how it mirrors (but isn’t identical to) the US cycle. Now we get to the really juicy stuff: why inflation behaves so differently in EM, how to forecast it, and when to actually put trades on around central bank pivots.