Counting the Cost - India's sliding economy

Emerging markets are having a tough time the world over - with falling currencies, falling markets and falling confidence. And a lot of the blame is being placed at the steps of the US Federal Reserve. This week on Counting the Cost, we look at the fiscal chain of command that is rattling economies across the globe - and its effects. The Federal Reserve has been trying to stimulate the US economy. Every month, it spends around $85bn buying bonds. That has the effect of keeping interest rates lower, and thus hopefully stimulating business. But the side effect is that returns on investments are not good. So investors rush into so-called emerging markets such as India and Brazil, because they can simply make more money in these riskier markets. However, the US Federal Reserve has warned that it is about to turn that money tap off, which would mean a reverse of the status quo, and all that investment money heading back towards the US.