"This latest panic is partly about politics. Look at the list of worst-hit countries. Turkey's currency has collapsed due to a corruption scandal that has engulfed its prime minister. Venezuela, which also devalued last week, is a wreck. South Africa is facing a wave of industrial unrest. Ukraine is being racked by huge protests. The Thai baht has so far held up surprisingly well—but our correspondent believes the country's very unity is now at stake," writes the Economist in an editorial.
"The remedy for undue global sensitivity to U.S. monetary policy isn't a different approach by the Fed; rather, it's burden-sharing. Eventually, other currencies, such as the euro and the renminbi, need to function alongside the dollar as reserve currencies. In the meantime, better U.S. fiscal policy—less budget contraction now, when the economy needs stimulus, and more later— would also lighten the Fed's load," Bloomberg writes in an editorial.