Measures in response and future tasks As I pointed out earlier, due to the heightened volatility of emerging market country capital flows, their central banks are hard put to come up with appropriate policy responses. Since the overriding priority in policy responses should be placed upon ensuring domestic financial stability, it is absolutely vital to keep inflation expectations low and stable.
To this end,  2  Serven, Luis and Ha Nguyen (2010), “Global Imbalances before and after the Global Crisis”, Policy Research Working Paper 5354, World Bank  3  IMF, World Economic Outlook CH4.