Emerging vs Developed Markets

What you'll learn

• ✓Contrast EM and DM risks

Lessons

1. 🌏
   Same Label, Different Game

   What a decade of EM and DM returns actually looked like
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2. What Makes a Market EM

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3. What Drives EM Markets

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4. Real Crises and Original Sin

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5. Boss: Frontier, Cases, and the Mixed Verdict

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Sources

All content is drawn from the sources below. We deliberately avoid unverified material.

• MSCI Market Classification Framework
  MSCI · institutional
  Primary reference for the EM versus DM classification dimensions (size, liquidity, market accessibility, FX) and for the South Korea EM classification used in lessons 1, 2, and 5.
  https://www.msci.com/our-solutions/indexes/market-classification
• FTSE Russell Country Classification Annual Review
  FTSE Russell · institutional
  Used to confirm that FTSE classifies South Korea as developed (since 2009), the contrast point in lesson 2.
  https://www.lseg.com/en/ftse-russell/equity-country-classification
• MSCI EM and MSCI World index historical performance factsheets
  MSCI · data
  Underlying source for the 2008 to 2018 annualized return and volatility comparison used in lesson 1.
  https://www.msci.com/end-of-day-data-search
• The Pain of Original Sin (Eichengreen, Hausmann), NBER WP 10036
  National Bureau of Economic Research · academic
  Coined the 'original sin' concept used in lesson 4 and the boss.
  https://www.nber.org/papers/w10036
• Emerging markets finance (Bekaert, Harvey, 2003)
  Journal of Empirical Finance · academic
  Structural reference on EM return, volatility, and integration features. Backs the 'higher EM volatility' claim in lessons 1 and 5.
  https://www.sciencedirect.com/science/article/abs/pii/S0927539802000546
• Global Financial Stability Report, October 2013
  International Monetary Fund · institutional
  Documents the May to September 2013 'taper tantrum' EM sell-off used in lesson 3.
  https://www.imf.org/en/Publications/GFSR/Issues/2016/12/31/Transition-Challenges-to-Stability
• Capital Flows Tracker, end-2022 update
  Institute of International Finance · data
  Source for the roughly 70 billion USD EM portfolio outflows figure cited in lesson 4.
  https://www.iif.com/Research/Capital-Flows-Tracker
• World Economic Outlook, October 2018, EM chapter
  International Monetary Fund · institutional
  Reference for the 2018 Turkey lira and Argentina peso crises used in lesson 4.
  https://www.imf.org/en/Publications/WEO/Issues/2018/09/24/world-economic-outlook-october-2018
• This Time Is Different: Eight Centuries of Financial Folly
  Princeton University Press · book
  Reinhart and Rogoff (2009). Used as the broader pattern reference for EM 'sudden stops', cited around the 1997 Asian crisis in lesson 4.
• MSCI Frontier Markets Index methodology
  MSCI · institutional
  Reference for the frontier-market definition (Vietnam, Bangladesh) used in the boss lesson.
  https://www.msci.com/index/methodology/latest/MFM