Partly true 1: “It is lax supervision that was to blame in Ireland.” Only partly because, as mentioned, any attempt to assign responsibility must start with the banks. Still, we must not neglect the ineffectual supervision which failed to inhibit this banking behaviour.
The third risk to EMEs is the high volatility in international oil prices. For net energy importers like India, the recent firming up of oil prices on production cuts by major suppliers presents risks to current account deficit and inflation.