The Impact of Global Financial Market Fluctuation on Emerging Market Economies

Abstract

This article systematically studies the impact and transmission mechanism of global financial market volatility on emerging market
economies. Research has shown that in the post pandemic era, the driving factors of global financial volatility have shifted from traditional
economic cycles to being more influenced by complex factors such as geopolitical conflicts, trade barriers, macroeconomic policy shifts in developed countries, and the wave of the artificial intelligence industry. These fluctuations are mainly transmitted to emerging markets through
trade, finance, and expectation channels, and the empirical impact is reflected in emerging characteristics such as the deviation between asset
performance and capital flow, and the vulnerability differentiation brought about by the evolution of debt structure. Given the inherent weaknesses of emerging markets in policy space and financial system robustness, this article ultimately proposes that emerging market economies
must strengthen macroprudential management, enhance exchange rate flexibility, accumulate sufficient external buffers, and deepen domestic
financial reforms to effectively mitigate the spillover effects of global financial turbulence and maintain long-term stability and sustainable
development of the economy and finance.