Global monetary policy: Countervailing motion

Posted: February 7, 2014 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

The worldwide wobble

Fly Title: 

Global monetary policy

Rubric: 

The Fed may be “tapering” but central banks in Japan and Europe are still easing

Location: 

TOKYO

Main image: 

Red rags to Kuroda

Red rags to Kuroda

THOSE looking for someone to blame for the upheaval in financial markets tend to finger the Federal Reserve. By phasing out its scheme of suppressing interest rates through bond purchases, the theory runs, it prompted capital to stampede from emerging markets into the rich world in expectation of rising yields. Yet the Fed’s shift to a less expansionary monetary policy is only half the story: central banks in the euro area and Japan, the world’s second- and fourth-biggest economies (at market exchange rates), are still moving in the opposite direction.
In Japan, the government of Shinzo Abe is striving to exorcise the deflation that has haunted its economy for a decade and a half, …

via Economic Crisis http://ift.tt/LCTaNk

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