1.0MDB Reform Acceleratorhttps://mdbreformaccelerator.cgdev.orgLara Cornarohttps://mdbreformaccelerator.cgdev.org/author/lcornaro/rich600338<blockquote class="wp-embedded-content" data-secret="VJEmKSgIC6"><a href="https://mdbreformaccelerator.cgdev.org/quantitative-tightening-and-capital-flows-to-emerging-markets/">Quantitative Tightening and Capital Flows to Emerging Markets</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://mdbreformaccelerator.cgdev.org/quantitative-tightening-and-capital-flows-to-emerging-markets/embed/#?secret=VJEmKSgIC6" width="600" height="338" title="“Quantitative Tightening and Capital Flows to Emerging Markets” — MDB Reform Accelerator" data-secret="VJEmKSgIC6" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /*! This file is auto-generated */ !function(c,l){"use strict";var e=!1,o=!1;if(l.querySelector)if(c.addEventListener)e=!0;if(c.wp=c.wp||{},c.wp.receiveEmbedMessage);else if(c.wp.receiveEmbedMessage=function(e){var t=e.data;if(!t);else if(!(t.secret||t.message||t.value));else if(/[^a-zA-Z0-9]/.test(t.secret));else{for(var r,s,a,i=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),n=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),o=0;o<n.length;o++)n[o].style.display="none";for(o=0;o<i.length;o++)if(r=i[o],e.source!==r.contentWindow);else{if(r.removeAttribute("style"),"height"===t.message){if(1e3<(s=parseInt(t.value,10)))s=1e3;else if(~~s<200)s=200;r.height=s}if("link"===t.message)if(s=l.createElement("a"),a=l.createElement("a"),s.href=r.getAttribute("src"),a.href=t.value,a.host===s.host)if(l.activeElement===r)c.top.location.href=t.value}}},e)c.addEventListener("message",c.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",t,!1),c.addEventListener("load",t,!1);function t(){if(o);else{o=!0;for(var e,t,r,s=-1!==navigator.appVersion.indexOf("MSIE 10"),a=!!navigator.userAgent.match(/Trident.*rv:11\./),i=l.querySelectorAll("iframe.wp-embedded-content"),n=0;n<i.length;n++){if(!(r=(t=i[n]).getAttribute("data-secret")))r=Math.random().toString(36).substr(2,10),t.src+="#?secret="+r,t.setAttribute("data-secret",r);if(s||a)(e=t.cloneNode(!0)).removeAttribute("security"),t.parentNode.replaceChild(e,t);t.contentWindow.postMessage({message:"ready",secret:r},"*")}}}}(window,document); </script> In its May 15th meeting, the Federal Open Market Committee of the U.S. Federal Reserve (Fed) lifted its benchmark policy rate by 0.75% to 1.50%–1.75%, the biggest increase since 1994. In addition to hikes in basic interest rates, liquidity conditions in the US economy will also be affected by the shrinking of the Fed's balance sheet starting this month.