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Emerging market economies (EMEs) have become the darlings of international investors and the focus of enormous attention in academic, media, and policy circles. M. Ayhan Kose and Eswar Prasad present the definitive account of the evolution of EMEs and use the lens of the global financial crisis to evaluate their strengths and weaknesses.

Led by a set of large and dynamic countries--including Brazil, China, India, and Russia--EMEs have become a dominant presence in the world economy. They now account for a substantial share of world output and have been a major driver of global growth...