Foreign investments get scared by monetary policy

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Reference no: EM13769490

In an interview with Daron Acemoglu, he says "the hot money which was floating through Turkey has stopped after FED's declaration that we are going to give much more attention on monetary policy". Basically I know some fundamental things like monetary policy interests with the foreign currency but don’t get exactly how it affects directly. Why or how do foreign investments get scared by monetary policy?

Reference no: EM13769490

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