https://macropaperwarehouse.com/authors/steven-kamin/Steven KaminHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/how-do-rising-u.s.-interest-rates-affect-emerging-and-developing-economies-it-depends/https://macropaperwarehouse.com/papers/how-do-rising-u.s.-interest-rates-affect-emerging-and-developing-economies-it-depends/<p><strong>Research Question</strong></p> <p>This paper examines how the effects of rising U.S. interest rates on emerging market and developing economies (EMDEs) depend on the underlying source of the interest rate increase. Specifically, it asks: what mix of inflation, reaction, and real shocks has driven changes in U.S. interest rates in recent years; how do these different shock types affect EMDE financial markets, capital flows, borrowing costs, and fiscal outcomes; and how do they affect the likelihood of EMDE financial crises?</p>