News from 2013-09-26 / KfW Research
World of difference between Fed and ECB monetary policy
The considerable impact of the US Federal Reserve's "tapering" announcement on the capital markets highlights the need for central banks, particularly the Fed, to carefully and cautiously conduct and communicate their exit from expansionary monetary policy when the time comes. The ECB and Fed face different challenges. This edition of Focus looks at possible ways of exiting and the resulting interest rate implications, taking into account the different instruments available to the two central banks.
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