IMF fears forex volatility impacting EMEs like China & India.

The October IMF Global Financial Stability Report has the following comments:

"Company and bank balance sheets are now stretched thinner in many emerging markets, making some of these economies more susceptible to financial stress, economic downturn, and capital outflows. " IMF points out an example in the recent turmoil in China. 

"India’s credit expansion, although relatively more moderate, has not prevented high formation of new stressed loans."

IMF seems to be cautioning that Emerging economies seem quite susceptible. The low cost stimulus economy may be just about creating a possible bubble. Reversion to advanced economies seem advisable.

The views expressed here are without any risk or responsibility.