JOIN USRaising concerns of emerging economies over the impact of tapering, India on Friday said the US Federal Reserve should provide guidance and withdraw the monetary stimulus in a calibrated manner.
“There has to be a much greater clarity and much greater cooperation between the Fed and other emerging markets to ensure that tapering is done in a systematic manner so as not to destabilise whatever little stability has been achieved in the global economy,” India's Economic Affairs Secretary Arvind Mayaram said.
He said there should be some kind of guidance from the US authorities to make tapering more predictable.
“There must be a certain understanding as to how to go forward and what is the manner in which you will calibrate the withdrawal of the stimulus,” said the Secretary, who is here to participate in the G20 Deputies meeting.
The Fed first talked about tapering in May 2013, sending markets the world over into turmoil and the rupee to a record low.
However, the reduction started in January.
“There must be some benchmark...Should it be $10 billion every quarter or $20 billion...without destabilising the economy.
“Nobody knows how they are going forward. We want that to be a little more calibrated and one that takes others into confidence. Central bankers should be informed as they look into monetary policies. There has to be guidance,” Mayaram said.