Last but not least, underlying vulnerabilities remain among some large emerging market economies, with high corporate debt, weak bank balance sheets, and thin policy buffers, implying that these economies are still exposed to tighter global financial conditions, capital flow reversals, and the implications of sharp depreciations, especially as a result of an unprecedented strength of the US dollar.
All this heightens their exposure to severe external shocks. Indeed, the last time emerging economies 10  faced monetary tightening and fiscal loosening in the US (in the early 1980s), many of them (notably in Latin America) slid into a lost decade. 3.