It is necessary to recognize that just as the nature and functioning of ‘State’ has some variations as between countries, the working of markets also varies among countries. When a country gets globalised, the domestic institutional, legal and other structures have to be in reasonable harmony with international best practices. Otherwise, international flows cannot freely respond to market signals and information.
4  BIS central bankers’ speeches  fully rebuilt, increasing the vulnerability of these economies to shocks, both external as well as internal. 16. It is not unexpected therefore, that lately, the EDEs’ growth has been slowing down. Apart from the negative spillovers from the macroeconomic conditions in advanced economies, deleveraging and financial uncertainties have led to volatile capital flows.