More recent examples are also relatively positive in terms of differentiation. Before the Chinese Central Bank to unravel the markets this month with the devaluation of the yuan, while the currencies of developing countries fell, there were signs of different treatment on the basis of the foundations of their economies. For example, the currencies of countries that were less dependent on short-term capital flows are presented better against the dollar. Indian rupee in particular benefited from a strengthening of the macroeconomic framework of the country, fell much less than other currencies of the developing countries in Asia, including the Indonesian rupiah and Malaysian ringgit, and even less in comparison with ” problem children “such as the Brazilian real and Turkish lira notes FT.

Good examples

And even in the midst of the turmoil caused by the decision of the Chinese central bank to devalue the yuan in early August, and then to cut interest rates Tuesday, the currencies of the best managed countries of Central and Eastern Europe (CEE) that have weak direct links with China, and relatively good economic fundamentals, performed quite well. Unlike the sharp decline of the Turkish lira and the ruble Czech koruna, Hungarian forint and the Romanian leu kept the majority of gains against the euro by mid-year and rose against the dollar. Shares in CEE declined along with the stock exchanges elsewhere in the developing world, but remain well above their levels from the beginning of the year.

If they look mikrodokazatelstvata, trade on Monday, before the intervention of the Chinese Central Bank showed that investors tend to distinguish between China and the rest. Shares of countries in the developing Asian countries have recovered from their losses from the previous week, while Chinese shares continued to fall.

In the long run the real impact of recent market turmoil on the economies of developing countries may not tally with price movements. Exporters of raw materials that have high inflation is more likely to benefit than impairment losses.

The impact of movements in share prices on the real economy depends on the exposure of households to capital markets and how companies rely on the markets to raise capital. It is worth noted that the prices of bonds of developing countries in recent weeks changed much less than currencies and stock prices, says FT.

Equally worrying for developing countries as turbulence in the markets, however, should be the fact that when investors come to look for good stories in periods of calm, will find little ones. Even with the recent turmoil in markets there are signs that investors differentiate between individual countries increasingly varied world of emerging economies. This distinction may not survive the eventual collapse of the real markets, but early signals suggest that better economic fundamentals and policies somewhat reassuringly rewarded.