Compared with the developed market economies that had borrowed heavily in the run up to the financial crisis, the emerging market creditors:

Question

Quizplus · Accepted Answer

Emerging market creditors fared well and recovered rapidly because they restricted borrowing and saved foreign currency reserves. They were cautious in their lending practices and did not borrow excessively, which helped them withstand the effects of the financial crisis better than the developed market economies that had borrowed heavily. Additionally, many emerging market governments implemented policies to encourage savings and restrict spending, which further strengthened their financial positions.

Compared with the Developed Market Economies That Had Borrowed Heavily