IMF's emerging markets warning is timely

An interest rate increase from the US Federal Reserve is a likely catalyst for the crisis in emerging markets the International Monetary Fund clearly fears

The world has turned full circle. In the early 1990s, the slow-burn financial crisis that came to a climax in 2008 had its origins in the developing world. From Mexico in 1994 to Thailand in 1997 the story was the same: hot money from abroad; asset price booms; overvalued currencies; burst bubbles; hot money rushing for the exit.

Eventually, the malaise wormed its way from the periphery of the global economy to its core: the developed markets of north America and western Europe. Now the focus of the International Monetary Fund is back on the risks presented by the emerging world.

Related: IMF warns of new financial crisis if interest rates rise