THE Federal Reserve's halt to bond buying is testing central bankers' efforts to control inflation halfway round the world.
Two of the world's biggest emerging markets epitomise the struggle to weather spillovers from the United States. With a determined focus on price stability, Reserve Bank of India (RBI) governor Raghuram Rajan is having more success than Turkish counterpart Erdem Basci, whose room for manoeuvre is hamstrung by a government demanding low borrowing costs.
Both countries saw their currencies plummet last year when investors pulled money out of emerging markets deemed most vulnerable to the eventual withdrawal of US monetary stimulus. The outlook for the Indian currency...