A friend wrote this on Facebook (I paraphrased it slightly):
It’s a bit ironic that the large emerging markets countries, which complained about monetary easing in the US (Brazilian Finance Minister Guido Mantega called it ‘currency war’) now these countries are the hardest hit when talks about tapering are now hitting the headlines… Be careful what you hope for… Brazil just had a massive weakening of its currency and the central bank had to hike rates to defend the currency. Not good for growth. Talk about bad policies….
My friend is of course is completely right. Monetary easing in the US and Japan was never a problem for Emerging Markets and in the case of Brazil it is clear that the country has much bigger problems than monetary easing in the US and Japan to worry about.