Publication:
Tapering Talk : The Impact of Expectations of Reduced Federal Reserve Security Purchases on Emerging Markets

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dc.contributor.authorEichengreen, Barry
dc.contributor.authorGupta, Poonam
dc.date.accessioned2014-02-03T20:51:44Z
dc.date.available2014-02-03T20:51:44Z
dc.date.issued2014-01
dc.description.abstractIn May 2013, Federal Reserve officials first began to talk of the possibility of tapering their security purchases. This tapering talk had a sharp negative impact on emerging markets. Different countries, however, were affected very differently. This paper uses data on exchange rates, foreign reserves and equity prices between April and August 2013 to analyze who was hit and why. It finds that emerging markets that allowed the real exchange rate to appreciate and the current account deficit to widen during the prior period of quantitative easing saw the sharpest impact. Better fundamentals (the budget deficit, the public debt, the level of reserves, or the rate of economic growth) did not provide insulation. A more important determinant of the differential impact was the size of the country's financial market: countries with larger markets experienced more pressure on the exchange rate, foreign reserves, and equity prices. This is interpreted as showing that investors are better able to rebalance their portfolios when the target country has a relatively large and liquid financial market.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/01/18832605/tapering-talk-impact-expectations-reduced-federal-reserve-security-purchases-emerging-markets
dc.identifier.doi10.1596/1813-9450-6754
dc.identifier.urihttps://hdl.handle.net/10986/16826
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6754
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectASSET PRICES
dc.subjectASSETS
dc.subjectBANK LENDING
dc.subjectBASIS POINTS
dc.subjectBOND SPREAD
dc.subjectBOND SPREADS
dc.subjectBOND YIELDS
dc.subjectBUDGET DEFICIT
dc.subjectBUDGET DEFICITS
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ACCOUNT OPENNESS
dc.subjectCAPITAL ACCOUNT TRANSACTIONS
dc.subjectCAPITAL CONTROL
dc.subjectCAPITAL CONTROLS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL MARKET
dc.subjectCDS
dc.subjectCENTRAL BANK
dc.subjectCHECKS
dc.subjectCLOSED CAPITAL ACCOUNT
dc.subjectCOMPETITIVENESS
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONTROL VARIABLE
dc.subjectCORRELATION COEFFICIENTS
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAP
dc.subjectCREDIT DEFAULT SWAPS
dc.subjectCURRENCY
dc.subjectCURRENCY DEPRECIATION
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectCURRENT ACCOUNT TRANSACTIONS
dc.subjectCURRENT ACCOUNTS
dc.subjectCURRENT DEFICIT
dc.subjectDE FACTO EXCHANGE RATE REGIME
dc.subjectDEBTS
dc.subjectDEPENDENT VARIABLE
dc.subjectDEPRECIATIONS
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTLOOK
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC POLICY
dc.subjectEMERGING COUNTRIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKETS
dc.subjectEQUITIES
dc.subjectEQUITY PRICE
dc.subjectEQUITY PRICES
dc.subjectEXCHANGE ARRANGEMENTS
dc.subjectEXCHANGE DEPRECIATION
dc.subjectEXCHANGE MARKET
dc.subjectEXCHANGE RATE DATA
dc.subjectEXCHANGE RATE DEPRECIATION
dc.subjectEXCHANGE RATE REGIME
dc.subjectEXCHANGE RATES
dc.subjectEXCHANGE RESTRICTIONS
dc.subjectEXPLANATORY VARIABLES
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNAL PRESSURES
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL INFLOWS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL OPENNESS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SHOCKS
dc.subjectFINANCIAL SYSTEMS
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL POLICY
dc.subjectFOREIGN ASSETS
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN RESERVES
dc.subjectGDP
dc.subjectGLOBAL FINANCIAL STABILITY
dc.subjectGOVERNANCE INDICATOR
dc.subjectGOVERNANCE INDICATORS
dc.subjectGOVERNMENT BOND
dc.subjectGOVERNMENT BOND MARKETS
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectIMPORTS
dc.subjectINFLATION
dc.subjectINFLATION INDEX
dc.subjectINFLATION RATE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE SPREADS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectLIABILITY
dc.subjectLIQUID MARKET
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOCAL CURRENCY
dc.subjectLOCAL MARKET
dc.subjectLOCAL MARKETS
dc.subjectM2
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET PRESSURE
dc.subjectMARKET SIZE
dc.subjectMARKET STOCK
dc.subjectMARKET STRUCTURE
dc.subjectMARKET YIELDS
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectMORTGAGE
dc.subjectMORTGAGE MARKET
dc.subjectMULTIPLE EXCHANGE RATES
dc.subjectNOMINAL DEPRECIATION
dc.subjectNOMINAL EXCHANGE RATE
dc.subjectOPEN CAPITAL ACCOUNT
dc.subjectPERCEIVED VULNERABILITY
dc.subjectPOLICY ANALYSIS
dc.subjectPOLICY RESEARCH
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO LIABILITIES
dc.subjectPORTFOLIO LIABILITY
dc.subjectPORTFOLIOS
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE CAPITAL INFLOWS
dc.subjectPRIVATE FINANCING
dc.subjectPRIVATE INFLOWS
dc.subjectPUBLIC DEBT
dc.subjectRATE OF DEPRECIATION
dc.subjectRATE OF GROWTH
dc.subjectREAL APPRECIATION
dc.subjectREAL EFFECTIVE EXCHANGE RATES
dc.subjectREAL EXCHANGE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL EXCHANGE RATE APPRECIATION
dc.subjectREAL EXCHANGE RATES
dc.subjectREAL GDP
dc.subjectREGRESSION ANALYSIS
dc.subjectRESERVE BANK
dc.subjectRESERVES
dc.subjectROBUSTNESS CHECKS
dc.subjectSECURITIES
dc.subjectSHORT TERM DEBT
dc.subjectSOVEREIGN BOND
dc.subjectSOVEREIGN BONDS
dc.subjectSPECULATIVE ATTACKS
dc.subjectSTANDARD DEVIATION
dc.subjectSTANDARD DEVIATIONS
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCK INDEX
dc.subjectSTOCK INDICES
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKET CAPITALIZATION
dc.subjectSTOCK MARKET DECLINE
dc.subjectSTOCK MARKET DECLINES
dc.subjectSTOCK MARKET INDEX
dc.subjectSTOCK MARKET INDICES
dc.subjectSTOCK MARKETS
dc.subjectSTOCK PRICE
dc.subjectSTOCK PRICES
dc.subjectSTOCKS
dc.subjectTOTAL EXTERNAL DEBT
dc.subjectTOTAL RESERVES
dc.subjectTREASURIES
dc.subjectUPWARD PRESSURE
dc.subjectWEALTH
dc.subjectWEIGHTS
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.titleTapering Talk : The Impact of Expectations of Reduced Federal Reserve Security Purchases on Emerging Marketsen
dspace.entity.typePublication
okr.crossref.titleTapering Talk: The Impact of Expectations of Reduced Federal Reserve Security Purchases on Emerging Markets
okr.date.disclosure2014-01-01
okr.date.doiregistration2025-04-10T11:40:38.485694Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/01/18832605/tapering-talk-impact-expectations-reduced-federal-reserve-security-purchases-emerging-markets
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid876841468149666997
okr.identifier.doi10.1596/1813-9450-6754
okr.identifier.externaldocumentum000158349_20140122154930
okr.identifier.internaldocumentum18832605
okr.identifier.reportWPS6754
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/01/22/000158349_20140122154930/Rendered/PDF/WPS6754.pdfen
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.unitOperations and Strategy Unit, Development Economics Vice Presidency
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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