If Fed policies are indeed effective, that
so-called taper tantrum was "merely the global macroeconomic
equilibrium in action," St. Louis Federal Reserve President
James Bullard said in slides prepared as part of a presentation
to an investment conference in Hong Kong.
He said he subscribed to that view himself.
Such global volatility, he explained, is a side effect of each
central bank pursuing the best possible policy for its own
country, and there is little to be gained by international
But an alternative view, he said, holds that current U.S.
monetary policies are not as effective as conventional policies
and therefore can lead to more global volatility.
"I think unconventional U.S. monetary policy has been
sufficiently aggressive" to be effective, Bullard said in the
"However, I admit that there is plenty of room for debate on
(Reporting by Michael Flaherty;
writing by Ann Saphir; editing
by Lisa Shumaker)
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