Introduction

Emerging markets took a battering last month. With fears of a global recession growing, investors ditched high-yielding assets en masse, causing local stock markets and exchange rates to go into freefall.Brazil's Bovespa index fell 36.5% between the start of October and October 24, while the Mexico Bolsa index tumbled 31.8% over the same period. Even that pales in comparison with Russia, where the Micex index fell 49.6%. With overseas investors taking flight, the value of emerging market cur