One may argue that EMEs where inflation is well under control should therefore not hesitate to use the policy space available to them to address the downside risks to growth. But the reality is far more complicated than it appears. There is substantial tail risk associated with the euro area debt crisis, which if it materializes could wreak havoc on EMEs.
Furthermore, central banks will, in all likelihood, need to continue to use their balance sheets to help support the financial markets. The PIMCO Secular Outlook has described the crisis as one of serial balance sheet contamination. It started off with private sector balance sheets being expanded unsustainably (households and banks).