This affects the ability of individual members to respond to economic shocks that are specific to individual countries or regions or that result in diverging developments. What can then the single monetary policy and economic policies do to avoid the risks of shocks that give rise to diverging developments?
1/5  BIS central bankers' speeches  The second dimension relates to the institutional design needed for social, political and economic development. This has been highly elusive for several emerging market countries, especially in Latin America, trapping the region in a “highly persistent slow development equilibrium”, making it unable to reach the “underdevelopment escape velocity”. Many factors share the blame in this unfortunate outcome.