Tuesday, September 24, 2013

The right view on Fed tapering

“Let us remember that postponement of tapering is only that—a postponement…Let’s not lose the chance, the warning that we have been given, because this is going to come back and what we need to do is put our house in order before.” 

-Raghuram Rajan New governor of the Reserve Bank of India (RBI) and University of Chicago professor. 

If he talks, you should listen. The reaction to tapering especially for those firms and countries that borrowed significantly was strongly negative. The weak EM countries has responded to the reprieve but it will have to happen at some time. The withdrawals from excessive easing will never be easy 

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