These developments posed risks to growth and inflation. Strong fundamentals, forex reserve buffers, capital in banking systems and prudent macroeconomic policies, however, enabled these economies to absorb global spillovers. Yet, as Agustin Carstens and Hyun Song Shin soberingly point out, “EMEs aren’t out of the woods yet”.1  Global Risks Let me highlight three major risks confronting EMEs in 2019. 2.
Generally speaking, legislation and macro-policies aim at maintaining fair competition and efficient allocation of resources, reflecting the overall interests of the whole society. Under this framework, a positive interaction is formed among the legislative bodies, macro-adjustment departments and the public, which would also contribute to cushioning big shocks to the economic and social development.