{"id":129782,"date":"2021-08-30T17:37:01","date_gmt":"2021-08-30T12:07:01","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=129782"},"modified":"2021-09-01T18:06:04","modified_gmt":"2021-09-01T12:36:04","slug":"no-taper-tantrum-on-us-fed-reserve-policies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/no-taper-tantrum-on-us-fed-reserve-policies\/","title":{"rendered":"No taper tantrum (On US Fed reserve policies)"},"content":{"rendered":"<p><strong>Source:<\/strong> <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.business-standard.com\/article\/opinion\/no-taper-tantrum-121082900985_1.html\">Business Standard<\/a><\/span><\/p>\n<h5><b>What is the news?<\/b><\/h5>\n<p>The US Fed Reserve is considering reducing the pace of its asset purchase. As per Fed&#8217;s Chairman, the economy had evolved as expected, and it could be appropriate to start reducing asset purchase this year.<\/p>\n<p>But, it&#8217;s not clear at this stage as to when the Fed will start <strong>tapering<\/strong> and at what pace.<\/p>\n<ul>\n<li>Tapering is the\u00a0<strong>gradual reduction in the monthly purchase of assets<\/strong> by the Federal Reserve. It is the process of slowing down Quantitative Easing (QE).<\/li>\n<\/ul>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #f7f2f2;\">\n<tbody>\n<tr>\n<td style=\"width: 100%;\"><strong>Must Read:<\/strong> <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/forumias.com\/blog\/the-great-unwind\/\" target=\"_blank\" rel=\"noopener\"><strong>What is Quantitative Easing (QE)?<\/strong><\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h5><strong>Concerns for India<\/strong><\/h5>\n<ul>\n<li>The announcement of tapering in 2013 resulted in significant volatility, which led to a near currency crisis in India. A slower normalisation will give emerging markets more time to adjust. Some emerging market economies have started normalisation despite a slower economic recovery.<\/li>\n<li>To be sure, India is in a much better position than in 2013. Unlike then, the current account is in far better shape and India reported a surplus last fiscal year.<\/li>\n<li>It has also accumulated large foreign exchange reserves, which will help the Reserve Bank of India (RBI) manage volatility in the currency market effectively.<\/li>\n<li>But it still has two big problems, (i) sustained higher inflation, (ii) large general government Budget deficit with high public debt.<\/li>\n<\/ul>\n<p><strong>Way forward<\/strong><\/p>\n<ul>\n<li>As the world starts returning to normal, Indian policymakers will need to address inflation and a budget deficit to preserve financial stability.<\/li>\n<li>The government must also work on a medium-term fiscal plan.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source: Business Standard What is the news? The US Fed Reserve is considering reducing the pace of its asset purchase. As per Fed&#8217;s Chairman, the economy had evolved as expected, and it could be appropriate to start reducing asset purchase this year. But, it&#8217;s not clear at this stage as to when the Fed will&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/no-taper-tantrum-on-us-fed-reserve-policies\/\">Continue reading <span class=\"screen-reader-text\">No taper tantrum (On US Fed reserve policies)<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,9],"tags":[8940,9429,394,9430],"class_list":["post-129782","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-public","tag-monetary-policies","tag-quantitative-easing","tag-rbi","tag-tapering","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704455768},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/129782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=129782"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/129782\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=129782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=129782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=129782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}