Resilience of emerging market economies to global Şnancial conditions

Abstract

With lessons learned from previous episodes as well as substantial improvements in economic policiesand fundamentals over the years emerging market economies (EMEs) on average are better positioned towithstandŞnancial turbulences, both now and in the near future, than in the past. Since their respectivelastŞnancial crises most EMEs have been implementing more prudent policies, made stronger theirgovernance frameworks and createdŞnancial safety nets as a buffer against adverse shocks. As a result,they were able to strengthen their stock andflow balances and policy frameworks, deepen local capitalmarkets, and diversify their production and exports together with stronger global trade andlinkages