The EMEs exhibit very diverse characteristics to investors, whether in terms of country size, the size of financial markets, energy dependence, the level of forex reserves and, more generally, macroeconomic performance, Thus, not all the EMEs are equally impacted by the ongoing developments in the global economy and investors appear to differentiate between them.
The advantage of such diversity is that the possibility of any synchronised behaviour or a potential for contagion amongst the EMEs is to some extent moderated. However, Governor Draghi of Bank of Italy explained in his address earlier today that there are new financial intermediaries, new financial instruments and new dispersed risks.