What is the taper tantrum?

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.

Further readings:

  1. Monetary Policy – Objectives, Roles and Instruments
  2. Open Market Operation (OMO) – Two Kinds, REPO and PEMO

Related Links

Cash Reserve Ratio – Importance, Advantages & Effects

Fiscal Responsibility & Budget Management (FRBM) Act

Statutory Liquidity Ratio (SLR) – Definition, Objectives, Impacts

Download Indian Economy Notes For UPSC Examination

Fiscal Policy in India – Objectives, Components

UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Insolvency And Bankruptcy Code (IBC) – IBC Amendment Bill 2021 [UPSC Notes GS III]

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