Kuroda Says Developing Nations Worried About TaperingAki Ito
Policy makers from some emerging market economies voiced their concerns about the impact of an eventual reduction in monetary stimulus from developed nations, according to Bank of Japan Governor Haruhiko Kuroda.
“There were some opinions from emerging market economies that speculation of reduced monetary stimulus from the developed countries could lead to volatility in financial markets and capital flows,” Kuroda said today in a press conference in Washington.
A month since the U.S. Federal Reserve surprised investors by deciding not to slow its asset-purchase program, Group of 20 officials today pledged that future changes to monetary policy would be “carefully calibrated and clearly communicated.”
Alert to complaints from emerging markets that they could suffer once stimulus is withdrawn, the group promised to monitor “spillovers” in which actions taken by one economy hurt another.
Japanese Finance Minister Taro Aso said in a joint appearance with Kuroda that Japan was praised for its policies balancing economic growth and fiscal consolidation. He also repeated that an inability to raise the U.S. debt ceiling would hurt other nations as well as the U.S.