Time for a rethink on monetary policy

Fears that the Fed taper will negatively impact the global economy show how distorted views on monetary policy have become. A world worried about a return to normal is the real concern.

When 2,300 business leaders and government officials met for the Asian Financial Forum in Hong Kong this week, they were asked to vote on what they saw as the greatest threat to the world economy. Opinions were divided between troubles in emerging markets (52 per cent) and the withdrawal of monetary stimulus by the US Federal Reserve (32 per cent).

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