I plan to structure my talk in two parts. First, I will discuss the role of central banks as liquidity providers and lenders of last resort, seeking to preserve financial stability as a necessary, albeit insufficient, condition for achieving their primary objective of price stability.
Idiosyncratic factors include the economic growth outlook, the openness of capital accounts, the foreign exchange regime, macroeconomic fundamentals, “country risk,” and the financing needs of the emerging-market countries themselves.4  1  For a discussion of these risks, see the minutes of the Federal Open Market Committee (FOMC) of the Federal Reserve of March 19–20, 2013.