The announcement in May that the Fed could as early as this month start to “taper” its easy monetary policy, which has pushed $85bn a month into world capital markets since it launched the third phase of quantitative easing, has put many emerging market currencies and financial markets under severe strain. Countries such as India, Indonesia, Turkey and Brazil have been under particular pressure because of worries that the end of the flood of easy money could further damage their current account deficits. China reiterated support for a Brics development bank and said the group of five countries had reached agreement on a $100bn dollar fund designed to help overcome short-term liquidity problems and ensure stability. However, he said that major details such as who would take what share in the financing, and where it would be based, have not been discussed. As i said... Easy money stops... markets fall.... BRICS has a backup plan...
Posted on: Thu, 05 Sep 2013 14:47:40 +0000
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