It is déjà vu for those who remember previous emerging market crises: imploding balance sheets, a bank run, disorderly falls in the currency and emergency policy responses (including on a Sunday evening). Yet there is a huge difference: this is happening in the US and not in an emerging economy.

In spite of significant – and previously unthinkable – measures, the US still faces the risk of further reductions in financial leverage in both the economy as a whole and at the level of individual companies. Sudden stops in the availability of liquidity remain possible, especially for hedge funds; and “price gapping” – where asset prices rise or fall suddenly – will remain the norm. As they consider what to do next, the US authorities would be well advised to study the experience of emerging economies. If they do, they will focus on three main findings.