Why The Fed Should Not Taper Alone

The Fed’s decision to taper its large-scale asset purchases is causing turmoil in emerging markets. But neither the Fed nor the US Treasury seem remotely concerned. The FOMC’s latest decision to continue the taper at $10bn per month makes no mention of anything other than US domestic conditions. And Jack Lew, the Treasury Secretary, suggests that problems in emerging market are more down to bad policy on their part than anything the Fed is doing.