Yet, the analysts in the financial markets often treat them as a group, presumably because the EMEs are perceived to be to be high-risk and high-reward destination for financial capital. That characteristic lends them to vulnerability in capital flows, sometimes for reasons other than economic fundamentals in the country concerned.
As the title implies, the EMEs are emerging from one state to another, namely, from less market orientation to greater market orientation, and are thus, in a state of transition. The central banks in the EMEs, in their pursuit of financial stability, have two additional challenges.