This is why I argue for better and more international cooperation, for the sake of growth and financial stability. Let me elaborate on this point further. I believe that EMEs, and particularly large EMEs, need to shift from external demand-driven growth to more domestic demand-driven growth.
Other specific factors such as inadequate risk management, valuation problems and uncertainties, distorted incentives, imperfect information, insufficient transparency and disclosure played a crucial role in the propagation and amplification of shocks. Put differently, the rapid advances in financial innovation and integration had not been accompanied by adequate appreciation of risk, effective risk management and sufficient market discipline.