Analysis of Warsh’s cutback of forward guidance has so far centered primarily around US markets, but this isn’t the full picture. Equally important to consider are the emerging markets that absorbed the risk appetite forward guidance created. For these countries, the pivot away from forward guidance can potentially promote healthier capital flows. The end of forward guidance means that capital allocation in emerging markets should become more responsive to fundamentals. For all these reasons, the end of forward guidance is very much an opportunity to discipline capital flows in emerging markets.