Are emerging markets decoupled or not decoupled from the stresses afflicting developed markets? There was more evidence on Monday that they are less decoupled than they would like.

It comes in a study from the Bank for International Settlements which looks at the reasons for contractions in cross-border bank lending from DMs to EMs in 2008 and 2011. While EM factors had a big part to play in the first contraction, it finds, the contraction in lending in 2011 was almost entirely determined by problems in the countries of origin – especially in Europe. Read more