In the meantime, emerging market (EM) economies policy makers on the other side of the globe while doing relatively better, had become increasingly concerned with “spillover” to their economies, given the relative importance of Europe and the US as trading partners to these economies.
In meeting after meeting among EM central bankers, the questions we asked of each other were: “How could we avoid any adverse effect on our own economies? How much would any spillover be?” Crisis prevention and mitigation had thus become the mantra of policy makers across the globe.