Due to the proposed financial tightening by the Chairman of the Federal Reserve in 2013, investors started moving their capital to safe-haven assets in developed markets. This came to be known as taper tantrum. You can read about the RBI – Reserve Bank of India [UPSC Indian Economy Notes] in the given link.
The movement of financial assets from emerging markets to developed markets was done by investors en masse.
- Monetary Policy – Objectives, Roles and Instruments
- Open Market Operation (OMO) – Two Kinds, REPO and PEMO