Crisis exposes complacency of emerging markets

The developed world debt crisis has shattered the myth about never-ending emerging market growth and exposed the complacency that had set in among developing economies and investors. That is the view of Ruchir Sharma, head of the global emerging market equity team at Morgan Stanley Investment Management, who argues that the EM boom peaked in late 2010 after a “truly freaky” decade of growth fuelled by easy money from central banks in the West. He couched his views to underline w…