On the upside, there may be stronger than anticipated effects stemming from the extensive macroeconomic stimulus being provided and from other policy measures taken. Confidence may also improve more quickly than currently expected.
For example, since the 1990s, many of them have made remarkable progress in reducing inflation, improving government debt ratios, building foreign reserves, and better regulating and capitalizing their banking systems. These improved economic fundamentals should bolster their resilience should normalization of monetary policy in the United States and some other advanced economies lead to financial market stresses.