•  Second, emerging markets and advanced economies are now much more integrated than they used to be in the 1990s. The share of emerging markets in global trade and GDP has increased strongly. In addition, despite the build-up of domestic-currency bond markets, there is still considerable dependence on foreign funding as a large share of local currency bonds is held by foreign investors.
2  BIS central bankers’ speeches  Altogether, these observations point to an easier transmission of shocks from advanced to emerging economies and vice versa. •  Third, tighter monetary policy conditions in advanced economies could also result in lower global commodity prices, which would have a negative impact on emerging markets as many of them are the main exporters of commodities.