Implications of financial market development for financial stability in emerging market economies

Note submitted to the G20 International Financial Architecture Working Group

BIS Other  | 
07 July 2020
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The development of financial markets in emerging market economies (EMEs) has strengthened EMEs' overall resilience to swings in capital flows and exchange rates. That said, the events of March 2020 demonstrated that financial conditions are still vulnerable to feedback loops between capital flows, exchange rates and asset prices.