“As soon as we started seeing the changes this year going in the wrong direction, namely for further rate reductions, then we started getting worried about the currency,” Ms. Calich said. “That has been, so far, the wrong policy response. And yeah, we’ve been very happy to have exited that position.”There are few politically palatable options for emerging market countries dealing with an inflationary upsurge and weakening currencies. But for a number of reasons, the inflationary rise is especially tricky political terrain for populists like Messrs. Orban, Erdogan and Bolsonaro, who all face elections in 2022 or 2023.Their personalized approach to politics — and the fact that they have all been in office for years — …
