An article authored by Pardee Center Faculty Fellow Kevin Gallagher was published on August 4 in Foreign Policy online. In the article, titled “Your Dollar, Our Problem,“ Prof. Gallagher discusses how the United States Federal Reserve’s recent decision to terminate quantitative easing will impact emerging market and developing countries. According to Prof. Gallagher, if certain forces align, an abrupt interest rate hike in the US could trigger capital flight from emerging markets at a time when growth is already sluggish for them.
Prof. Gallagher is the author of numerous Pardee Center publications (including an upcoming Pardee Center Task Force Report on capital account liberalization in China) and is the co-director of the Pardee Center’s Global Economic Governance Initiative, which strives to advance policy-relevant knowledge about economic governance for financial stability, human development, and the environment. The Initiative is co-sponsored by the Boston University Center for Finance, Law & Policy.