Emerging market chaos hits stock markets and currencies

A series of political scandals and accusations of mismanagement in some of the world's major developing economies triggered turmoil on international stock exchanges on Friday.

Funds Injection not panacea for ills of world economy

German lawmakers are expected to vote for a bigger bail-out today. However, the vote by the biggest European nation to boost the firepower of the European Financial Stability Facility (EFSF) alone will not permanently end the euro-zone debt woes, especially if European Union leaders continue to avoid the painful but necessary process that Asian countries underwent following the 1997 currency crisis.

Kasikornbank's market and economic research chief Kobsidthi Silpachai said both currency crises showed the dark side of currency peg and currency pool, which - for stability of their currencies - demanded that the countries lose their autonomy in monetary and fiscal management to the currency host country's authorities.