{"id":35024,"date":"2018-10-31T14:50:17","date_gmt":"2018-10-31T09:20:17","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35024"},"modified":"2018-10-31T14:50:17","modified_gmt":"2018-10-31T09:20:17","slug":"taper-timetable","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/taper-timetable\/","title":{"rendered":"Taper timetable:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/todays-paper\/tp-opinion\/taper-timetable\/article19731920.ece\"><span style=\"font-weight: 400;\">Taper timetable<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The conclusion of quantitative easing in the U.S. could affect investment flows into India<\/span><\/p>\n<p><b>Introduction:<\/b><\/p>\n<ul>\n<li><b><span style=\"font-weight: 400;\">The U.S. Federal Reserve started is unprecedented programme of liquidity infusion through the purchase of asset-backed and Treasury securities in the wake of the global financial crisis.<\/span><\/b><\/li>\n<li><span style=\"font-weight: 400;\">The Federal Reserve will throw its crisis-era stimulus programme into reverse from next month and stick with plans for further rate rises in a mark of confidence that stagnant inflation is set to bounce back.<\/span><\/li>\n<\/ul>\n<p><b>Key points:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The asset wind-down will begin with monthly reductions of a modest $10 billion in the three months through December.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">That amount will gradually increase in quarterly increments of $10 billion so as to reach, in October 2018, a monthly cap of $50 billion<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The FOMC has, in fact, marginally raised its median projection for U.S. real GDP growth in 2017 to 2.4%, from the 2.2% estimated in June<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">monetary authorities in the U.S. are focussed on reflating the economy by supporting \u201cfurther strengthening\u201d in the labour market through an accommodative stance, the central bank has to remain vigilant in warding off any let-up in expansionary momentum<\/span><\/li>\n<\/ul>\n<p><b>What is Quantitative Easing?<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Quantitative easing is a massive expansion of the open market operations of a central bank.<\/span><\/li>\n<li><b><span style=\"font-weight: 400;\">It is used to stimulate the economy by making it easier for business to borrow money.<\/span><\/b><\/li>\n<li><span style=\"font-weight: 400;\">The bank buys securities from its member banks to add liquidity to capital markets.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This has the same effect as increasing the money supply. In return, it the central bank issues credit to the bank\u2019s reserves to buy the securities.<\/span><\/li>\n<\/ul>\n<p><b>Implications on India:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It could affect investment inflows in India<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It will have pressure on the current account deficit.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">For Indian policymakers, there are both positive and negative cues.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Taper timetable:\u00a0 Context: The conclusion of quantitative easing in the U.S. could affect investment flows into India Introduction: The U.S. Federal Reserve started is unprecedented programme of liquidity infusion through the purchase of asset-backed and Treasury securities in the wake of the global financial crisis. The Federal Reserve will throw its crisis-era stimulus programme into&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/taper-timetable\/\">Continue reading <span class=\"screen-reader-text\">Taper timetable:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35024","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704885836},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35024","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35024"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35024\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}