Fed’s monetary tightening can send emerging economies reeling4 min read . Updated: 21 Nov 2022, 09:13 AM IST
The Volcker episode sent emerging economies reeling and today’s US Fed mustn’t disregard the fallout of its policy on others.
The Spanish-American philosopher George Santayana famously warned that “those who cannot remember the past are condemned to repeat it." But sometimes even those who can recall the past have a selective memory and draw the wrong conclusions. This is how the global policy response to the current bout of inflation is playing out, with governments and central banks across the developed world insisting that the only way to tame soaring prices is by raising interest rates and tightening monetary policy.
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