leading to profitable long - term investments and higher growth. iv ) economic stability, which includes price stability, financial stability, and low volatility of output around potential. to overcome “ the long and slippery road to development ” we need a shared vision of the future, with a comprehensive set of principles and policies that considers the idiosyncratic characteristics of our complex economic and social ecosystems. moving to better outcomes sometimes requires self - adopted multilateral commitments. this explains why some arrangements like trade agreements and economic unions have been useful as means to commit to long - term strategies and reduce adverse short - term political struggles. emerging markets ’ road to development requires an economic and financial integration to the global economy, along with domestic regulation and incentives aligned with best practices, and proven approaches and strategies. multilateral and international financial institutions have a historic opportunity to increase their catalytic role in emerging markets ’ development, fostering the adoption of these comprehensive approaches. if we could go as far as reaching a new, comprehensive, and detailed “ shared vision for emerging markets ’ development ", with clear incentives and opportunity costs for key decision makers, it could have the potential of improving the fortunes of hundreds of millions of people. 3. the role of central banks in emerging markets during the pandemic and beyond 2 / 5 bis central bankers'speeches central banks play an instrumental role in all economies : price and financial stability are key public goods needed for sustainable growth and development, even more so in the challenging context of the pandemic. this is why independent central banks are a crucial element of the institutional framework, and their actions must be insulated from political pressures to focus on long - term stability, creating an environment conducive to economic growth and social development. the pandemic caused a synchronized global economic recession with large shocks in the financial and real sectors. first, we faced a sharp increase of risk aversion in global financial markets, with a strong impact on emerging markets in terms of capital outflows, foreign exchange depreciation, and higher risk premia. what was expected to be a transitory shock has become longer lasting and with significant heterogeneous effects across countries, sectors, and groups in society. this had major consequences for face - to - face services and for the informal sector – which are very important in emerging markets. the pandemic also accelerated ongoing trends, posing worrisome challenges, widening the technological divide among individuals and firms, and increasing inequality in education and development

opportunities. while advanced economies implemented historic stimulus programs, emerging markets faced policy tradeoffs and a more limited policy space. the pandemic significantly affected economic activity, external financing, and public revenues. the policy space has been more constrained than in advanced economies due to a dependence on external sources of finance, less resilient fiscal accounts, and weak and pro - cyclical fiscal revenues. taking into consideration the unprecedented nature of the shock, and the deep social scars it has caused, emerging markets have faced the challenge of supporting the economic recovery without compromising macroeconomic and financial stability. as capital - importer economies, emerging markets need to keep ample sources of financing and continuously attract foreign investment. this requires a strong and resilient macro mix, being conscious of the policy space available under additional adverse scenarios, and following a risk management approach as part of policy making. being mindful of the policy space does not justify inaction. comprehensive packages of nearterm support should be implemented jointly with credible medium - term strategies, anchoring macroeconomic sustainability, and promoting pro - growth structural reforms. despite facing a more complex and heterogeneous set of tradeoffs, central banks in emerging markets loosened monetary policy considerably and provided liquidity when needed. in the first months of the pandemic, global risk aversion and domestic financial markets ’ volatility called for a broad set of measures to supply liquidity and credit. in april 2020, banco de mexico announced up to 3. 3 % of gdp in several financing facilities. for mexico, the imf ’ s flexible credit line was a highly valued complement for our external liquidity buffers at a time of acute stress. in addition to avoiding a risk aversion spiral, supporting the recovery through an orderly and sustained reduction of interest rates along the yield curve is needed. this implies being mindful not only of short - term interest rates, but also of medium - and long - term rates, which in emerging markets are largely determined by risk premia. thus, to attain lower financing costs along the yield curve, a solid macroeconomic framework is required, with fiscal sustainability, price stability, and a resilient financial sector. regarding monetary policy instruments, asset purchase programs should not be considered “ over - the - counter ” measures in emerging markets. policy makers need to be mindful that central bank financing to governments can fall into a situation of fiscal dominance. stress tests of fiscal sustainability and availability of sources of finance are needed to avoid