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Prof. Anusha Chari of the University of North Carolina on shocks and capital flows in emerging markets

Scientific Sense ®

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Is Our Index Funds a Harmful for Global Financial Stability?

Open and mutual funds are a very low cost vehicle for many of us to get exposure. A recent paper related a globe of fun flows an emerging market, tal worst olober, whisk and wiskovertion shocks have distinct distribution bags for emerging market capital flors in recurns. There are salient consequences of global riskon and riskof shocks for tailisk and emerging markets. All those things sort ofa create a big issue for tisi, for is markes.

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