To some observers, the recent adjustments in international financial markets (rising interest rates, declining stock indices, and depreciating currencies vis-à-vis the US dollar) are 3  a welcome development as they are consistent with a strong economic outlook, reduced risks of deflation in some AEs and, in general, a thus-farsuccessful exit from the massive monetary accommodation of the decade following the outburst of the crisis.4 However, the risk of a sudden, sharp tightening in financial conditions cannot be discarded.
At the current economic and political global juncture, a number of factors increase significantly the risk of a potentially disruptive scenario. Among these, it is worth highlighting, first and foremost, the possibility of surprises in AE monetary policy normalization.