"Emerging Market Volatility: Lessons from the Taper Tantrum (PDF)," IMF Staff Discussion Note SDN/14/09.
Among those problems, he said, was the possibility of a new crisis originating from emerging market volatility.
In the midst of all the geo-political uncertainties and emerging market volatility, it is somewhat disappointing that the healthy fundamentals of Chinese corporates have largely been overlooked.
"When you have moments of volatility, emerging markets don't have the same installed base of buyers".All this means even a slow normalisation of the Fed's policy could yet cause more disruption.
Losses that European banks make on American mortgage products, for instance, may cause tighter credit in Hungary.To deal with such volatility, emerging markets need to manage demand in the way that rich nations do: through more flexible interest rates and exchange rates.
Ian Williams of Peel Hunt argues that recent company results haven't given much support either, saying: The outbreak of nervousness in risk assets has been attributed mainly to a combination of Fed tapering, Chinese growth concerns and emerging market currency volatility; we suspect the lukewarm corporate earnings news is as big an issue for equity investors.
While it is difficult to reject such assertions, one must not lose sight of the emerging levers for volatility that could affect natural gas prices quickly and dramatically.
All of these innovations are happening in a backdrop where stablecoins are emerging to defray volatility, and where enterprises and governments are increasingly moving from proof-of-concept to scaling apps into production, helping millions of people with blockchain technology.
I agree a reduced-volatility emerging market is up almost 3% so far, but still has plenty of room to grow.
It is adding uncertainty and volatility to emerging markets.
The diversification helps reduce the volatility of emerging markets and other risks like currency fluctuations.
