Global Monetary Policy: A View from Emerging Markets
The Federal Reserve’s moves to scale back its purchases of long-term bonds, a first step towards the exit from more than five years of unconventional monetary policy, has contributed to recent turmoil in financial markets around the world and provoked complaints from some emerging markets. Are the Fed and its counterparts in Europe and Japan insufficiently sensitive to the impact their moves have on emerging markets? Are emerging markets blaming the Fed for their own policy sins? Are financial markets overreacting? Can global economic-policy coordination be strengthened? Should it be?
On April 10, the Hutchins Center on Fiscal and Monetary Policy at Brookings hosted Raghuram Rajan, India’s central banker to discuss emerging markets’ perspective on advanced-economy monetary policies, a subject on which he has been very outspoken lately. Responding to Gov. Rajan’s remarks was Charles Evans, president of the Federal Reserve Bank of Chicago; Vitor Constancio, vice president of the European Central Bank; Alexandre Tombini, governor of the Central Bank of Brazil; and Eswar Prasad, the New Century Chair in International Trade and Economics and a senior fellow in Brookings’ Global Economy and Development program. The discussion was moderated by David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy and a senior fellow in Economic Studies.
(Paul Morigi) Raghuram Rajan delivering the keynote address
(Paul Morigi) Raghuram Rajan answering a question during the panel discussion.
(Paul Morigi) Panelists (L-R) David Wessel (moderator), Vitor Constancio, Eswar Prasad, Alexandre Tombini, Charles Evans and Raghuram Rajan.
(Paul Morigi) Brookings distinguished fellow in residence Ben Bernanke asking a question during audience Q&A.