{"id":155912,"date":"2021-12-23T23:56:13","date_gmt":"2021-12-23T18:26:13","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=155912"},"modified":"2021-12-23T23:56:13","modified_gmt":"2021-12-23T18:26:13","slug":"tapering","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/tapering\/","title":{"rendered":"Tapering"},"content":{"rendered":"<p><strong>About Tapering:<\/strong><\/p>\n<ul>\n<li>It is the theoretical <strong>reversal of quantitative easing(QE) policies<\/strong>, which are implemented by a central bank and intended to stimulate economic growth.<\/li>\n<li>Tapering refers specifically to the<strong> initial reduction in the purchasing<\/strong> of and accumulation <strong>of central bank assets.<\/strong><\/li>\n<li>As a <strong>result<\/strong> of their dependence on sustained monetary stimulus under QE, the financial markets may experience a <strong>downturn in response to tapering<\/strong>; this is known as a <strong>&#8220;taper tantrum&#8221;.<\/strong><\/li>\n<li>Tapering is the <strong>first step in the process of<\/strong> either winding down\u2014or completely <strong>withdrawing from<\/strong>\u2014a <strong>monetary stimulus<\/strong> <strong>program<\/strong> that has already been executed.<\/li>\n<\/ul>\n<p><strong>US Federal Reserve(Fed Tapering)<\/strong> used this policy in the aftermath of 2008 Global Financial Crisis and now after Corona peak to reverse the QE stimulus effects gradually.<\/p>\n<p><strong>Potential Effects of tapering- <\/strong>Due to the probable upcoming interest rate hikes in US, the Foreign Portfolio Investors <strong>(FPIs) started running out of the Indian Markets<\/strong> and this resulted in <strong>Rupee Depreciation<\/strong>.<\/p>\n<ul>\n<li>In an environment in which capital moves swiftly to whichever destination offers it higher returns, any significant change in the world&#8217;s largest economy can have profound effects on other, smaller economies of the world.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>About Tapering: It is the theoretical reversal of quantitative easing(QE) policies, which are implemented by a central bank and intended to stimulate economic growth. Tapering refers specifically to the initial reduction in the purchasing of and accumulation of central bank assets. As a result of their dependence on sustained monetary stimulus under QE, the financial&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/tapering\/\">Continue reading <span class=\"screen-reader-text\">Tapering<\/span><\/a><\/p>\n","protected":false},"author":10335,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-155912","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/155912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10335"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=155912"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/155912\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=155912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}