Emerging markets - Inflation is biggest risk to emerging growth

Rising prices remain a widely discussed topic in Asia, but very few believe central banks will raise rates sharply - in other words, central bankers have lost credibility. This is bad news if it significantly raises the cost of capital - bond yields may not be rising in the US, but they are across some emerging markets. Inflation hurts the poor most, and curbing it is becoming a political priority in many developing countries. But it is difficult to see how inflation can be curbed without a significant monetary tightening, and this, rather than the developed world's credit crunch, represe...