In 2022, accelerated monetary tightening in the United States led to currency depreciation and capital outflows in emerging markets. This situation underscores the vulnerability of these markets to global shocks. Market liquidity suffers when investors sell risky assets and move their funds to safer, more liquid assets. This behavior is called "flight-to-quality" and "flight-to-liquidity." A shortage of liquidity, coupled with structural problems in the local market, might trigger a systemic financial crisis. For instance, during the late 1990s, borrowers from developing Asian economies had maturity and currency mismatches in their balance sheets. These structural issues were significant factors behind the 1997/98 Asian Financial Crisis. Researchers have argued that emerging markets are vulnerable to shocks because they have difficulty borrowing from foreign sources in their domestic currency or securing long-term financing. […]