That said, the outworking of some of the excesses of the earlier period of rapid growth, especially the period just after the financial crisis of 2008, remains a work in progress and a source of risk. But in other ways, one could argue that the global backdrop has improved.
Ample global liquidity conditions  2  BIS central bankers’ speeches  have the potential to push volatile capital flows into emerging economies. If they respond by accumulating reserves to cap exchange rate appreciation, this widens global imbalances.