Finally, negative spillovers are also felt by EMEs through the financialization of commodities, a nontrivial factor behind the recent hikes in the prices of oil and other commodities. Before proceeding further, let me summarize my discussion of the key challenges to revival of growth thus far as follows.
First, AMEs now face a very difficult dilemma in that, while putting their public finances in order is the first priority for resumption of growth, this is less likely to be achieved unless and until they find additional sources of growth.