I have already had occasion to point out that the IMF’s stress tests, and similar exercises conducted by the Bank of Italy, show that the system can withstand not only the macroeconomic weakness posited in the baseline scenario for 2013–15 but also a less favourable scenario in which GDP growth is cumulatively more than 4 percentage points lower in the same three years.
I strongly believe that a multilateral framework under the aegis of the IMF is the most appropriate approach to deal with these issues. 8. It is important to appreciate the context in which EMEs operate so as to foster a shared understanding of their challenges.