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Tapering QE3 Challenges the Whole World

As the time of modifying the Quantitative Easing program is nearing, the possible effects started to be analyzed. Jackson Hole Symposium was the main event of the last days as central bankers, finance ministers, academics, and financial market participants from all over the world gathered to discuss the most important issues of the actual economic situation. Even if the man with the answers (Ben Bernanke) missed this event, other important persons came to draw a warning signal. Thereby, we can list Christine Lagarde, Janet L. Yellen and Haruhiko Kuroda.

Another worry that was added to the existing basket of problems is the way that QE3 influences countries from around the world. In the context of tapering this program, emerging markets could be affected. It’s true that the countries that have supported unconventional monetary policies have also been able to maintain a balanced economic climate and financial stability, and the whole system get used with this pulse, but stopping a program that calmed an entire world, may stir things up. This is what Christine Lagarde suggested and tried to draw the attention on the necessity to find the best way to make this change. On one side U.S. is doing well, making its economy to go more fast offers it the power to interrupt this program, while emerging countries have to deal with these circumstances and find solutions to face new challenging conditions.

Somehow or other, the “September moment” was also confirmed by Jackson Hole Symposium. Ben Bernanke wants to see its job finished until he ends its mandate and the current economic conditions seem to offer him the right moment to end his plan. On the other side of the ocean, the Europe and Japan may still enjoy the ultra-easy monetary policies they have already integrated so far.

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