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Interview

World Bank economist fears repeat of '80s debt crises

Inflation and weak growth put emerging markets at risk, says Ayhan Kose

High inflation and interest rate hikes by developed nations could plunge indebted emerging economies into a debt crisis, a World Bank economist warns.    © Reuters

WASHINGTON -- As central banks tighten monetary policy to tame galloping inflation, a rapid rise in interest rates will put heavily indebted emerging economies in a precarious position, Ayhan Kose, director of the World Bank's Prospects Group, told Nikkei.

Kose, who also serves as chief economist for the Prospects Group's parent office, sees striking similarities between the current situation and the debt crises of the 1970s and '80s as less-developed nations get squeezed by high debt, inflation and weak fiscal positions.

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