What Should My Family Worry About If MSCI Drops Indonesia?
MSCI has proposed moving Indonesia to Standalone status, and people fear a chain: stocks crash and stay down, the rupiah falls, foreign money leaves, prices rise faster. Against Indonesia's own record, foreign money left Indonesian shares around four of six past shocks, but the index was back above its pre-shock level a year later in four of five; inflation sped up by 2 percentage points or more after one of six rupiah slides, a bank deposit lost buying power after two of six, and consumer-loan rates rose a point or more after one of six.