G20 ministers on Saturday began their two-day deliberations to work out a ‘real and tangible framework’ to push global growth amid clamour for a more transparent tapering programme by the US Fed Reserve with a view to reducing volatility in the global financial markets. The contentious issue for the finance ministers and the central bank governors of G20 nations, which represent 85 per cent of the world economy, is the tapering or withdrawal of monetary stimulus by the US Federal Reserve as it has major implications on the markets in developed and emerging economies.
Finance Minister P Chidambaram too will pitch for greater transparency in the US Fed’s tapering operations and automatic sharing of tax information. Australian Treasurer Joe Hockey endorsed India’s demand for a ‘forward guidance’ on US Federal Reserve tapering when he made a case for a ‘no surprises policy’ as far as monetary activities were concerned. ‘That is what the central bank governors are waiting for, he added.
The Fed first talked about tapering in May 2013, sending markets the world over into turmoil and the rupee to a record low. Although the situation has improved much since then, the fears remain.
Finance Minister P Chidambaram too will pitch for greater transparency in the US Fed’s tapering operations and automatic sharing of tax information. Australian Treasurer Joe Hockey endorsed India’s demand for a ‘forward guidance’ on US Federal Reserve tapering when he made a case for a ‘no surprises policy’ as far as monetary activities were concerned. ‘That is what the central bank governors are waiting for, he added.
The Fed first talked about tapering in May 2013, sending markets the world over into turmoil and the rupee to a record low. Although the situation has improved much since then, the fears remain.