End to QE to 'split' emerging markets
By Wei Tian in Dalian, Liaoning | China Daily | Updated: 2013-09-14 07:44
The United States plan to taper its quantitative easing policy will "split" emerging economies, with some - including China - better-placed to withstand the change while others will face currency depreciation and capital flight, experts said.
"QE tapering by the US will be the single biggest uncertainty for the world economy," Li Daokui, a professor at Tsinghua University and former adviser to China's central bank, said at the World Economic Forum's Annual Meeting of the New Champions 2013, known as Summer Davos, in Dalian, Liaoning province, on Friday.
The US Federal Reserve has signaled it may soon slow its $85 billion-a-month purchasing program of government bonds and mortgage-backed securities, which started in December.
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