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Putting a ceiling on global GDP

The Fed has whipsawed emerging markets this year with its talk of scaling back bond buys. They have little choice, though, but to dance to its tune

Taper talk served up an unpleasant reminder for many emerging markets: Their economic fates are often hostage to the whim of the US Federal Reserve.

While the Fed's focus is on the US, its actions reverberate globally. That is due in large part to the role of the US dollar as the world's reserve currency and emerging market economies' dependence on it.

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