Financial Times (September 2)
Expectations of tapering by the Federal Reserve have “increased market volatility. And, as in past episodes of Fed tightening, emerging markets are at the centre of the turmoil…. No matter how gradual the tapering of QE, abrupt adjustments will occur. It is in the nature of financial markets to overreact and overshoot.”
Tags: Adjustments, Emerging markets, Expectations, Fed, Financial markets, Overreact, Quantitative easing, Tapering, Tightening, Volatility
The Economist (June 10)
Rather than stimulus, G20 leaders are now speaking fiscal restraint. But belt tightening, especially in Europe, could cause the economy to flounder or result in a double dip. The Economist points out, however, that the reality is not as bad as the talk. Much of the belt tightening is minimal and scheduled to begin from 2011. “A calm look at the numbers, then, suggests that the odds of a collective G20 blunder towards recovery-wrecking austerity this year are low.”
Tags: Double-dip, Europe, Outlook, Stimulus, Tightening
