For instance, in a recent study the BIS concludes that the sensitivity of emerging market local currency yields to bond yields in the US has accentuated over time, with potential of spillovers from US long-term Treasury bonds larger at the end of 2015 than during the “taper tantrum”.1 Third, in a situation of global uncertainty resulting from concerns about the strength of the world economy, subdued world trade, low commodity prices, tightening international financial conditions, and problems of a geopolitical nature, among others, the volatility of capital flows and unease about the implications for exchange and interest rates resulting from monetary policy divergence further accentuate the perception of risk.
The debate was only about the appropriate strategy – sequencing and timing, in particular – for transitioning to full capital account convertibility. China and India •  Let me invoke the example of India. Moving towards full capital account convertibility has always been our policy goal.