Ngaire Woods Debates Monetary Policy Spillovers on BBC’s Newsnight

On 31 January GEG Director Ngaire Woods appeared on BBC’s Newsnight discussing the effects of spillovers of US monetary policy on emerging and developing countries. As the US Federal Reserve begins to taper the extraordinary monetary policies it enacted during the crisis, countries far away - such as Turkey, Brazil and India – are experiencing dramatic financial turbulence, putting severe pressure on their economies.

Ngaire described the United States’ lack of consultation with other countries over coordinated monetary policy as “selfish and ill-advised”, and argued that “by simply floating the balloon that tapering would happen at some point, [the US Federal Reserve] injected a whole lot of precarious, febrile tension into the markets. And then by not consulting with major economies, by not pulling the G-20 together, making sure this is done in concert, what they’re doing is creating chaos.”

The interview can be seen online here, at 13.30 on the iPlayer clock.

On 12 February GEG will be co-hosting a private day-long workshop on the effects of monetary and financial regulatory spillovers on emerging and developing countries, featuring experts from academia, government, and the private sector. More information will be available after the event.