Emerging markets have also been somewhat slow in realising that, as they grow in importance, delayed adjustment is becoming self-defeating. Given the economic importance of emerging markets, their policy decisions are material for the stability of the international monetary system, and therefore for strong, sustainable and balanced global growth. In the end, excessive reserve accumulation represents a fallacy of composition.
Fiscal policy The year 2016 saw the enactment of a large number of fiscal measures, mainly related to tax and social security reforms and the establishment of an automatic fiscal adjustment mechanism.