From this perspective, it is necessary to examine the sustainability of price increases by comprehensively assessing the outlook for prices, as well as the underlying output gap, medium- to long-term inflation expectations, and wage  6  developments, in addition to various measures of core inflation, which exclude temporary fluctuations.
It is not yet clear if such external safety-nets can fully substitute for national level selfinsurance in terms of speed, effectiveness and autonomy. The option of capital controls 10. The third standard option for EMEs is to impose controls on capital flows. Experience in this regard has been mixed.