The debate we have seen over the past few days and weeks bears witness to the fact that market perceptions of Greece’s solvency were not entirely off the  3  J Hollmayr and C Matthes (2015) Tales of Transition Paths: Policy Uncertainty and Random Walks, Bundesbank Discussion Paper 14/2015.
Market disruptions fueled by these imbalances could be hard to manage. Emerging markets must be prepared to face greater risks and volatility due to potential spillover effects from this scenario. Reserve and fund managers, for their part, will have to use all their knowledge and talent to achieve the best risk and reward relationship possible in such a constantly evolving context.