EMs see the 'dark side' of foreign investments

[NEW YORK] IT is no fun to be a central banker in an emerging-market country when investors suddenly grow doubtful.

If you don't do what the foreign investors say you should do, your currency and your markets will be punished. And if you do what you are told, well, they could be punished anyway.

Turkey's central bank set out this week to show that it was changing its ways. After months of watching the country's currency lose value, and of refusing to raise interest rates despite receiving lots of advice from overseas to do so, it called a news conference, hinting that it would raise rates.