Foreign media reports, the International Finance Association (IIF) chief economist Brooks (Robin Brooks) said that the world is currently repeating the 2013, the U.S. Federal Reserve forecasts “water collection” when triggered by the “tapering panic” ( taper tantrum).
He said, in the U.S. economy to accelerate recovery, and other developed economies fall in the background, global capital back to the U.S. market, while the decline in risk aversion, resulting in U.S. bond yields rise so that the dollar is strong, while non-U.S. currencies and precious metals prices are under pressure, emerging markets because of capital outflows and suffered a stock and currency double kill.
IIF pointed out that the background of the “tapering panic” because the economy is improving, leading to early market bets that the Fed will thereafter withdraw easing measures, but if the financial market reaction triggered by it endangers the stability of the market environment, the Fed will be forced to take measures to appease. In 2013, the Federal Reserve will begin to reduce the size of QE delayed by three months, in order to leave more Time for the market to prepare and digest.
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