Traders around the world are anxiously waiting for the Ben
Bernanke decision of Fed tapering the QE and give updates us on the
direction of monetary policy in coming future.
Markets and
commodities over the last few weeks have corrected sharply, mainly due
to the fear created around the Tapering of Asset Purchases by the US
Federal Reserve as liquidity will be withdrawn from the world markets.
Indian Rupee is trading at life lows because of the same reason as
market participants have started fearing FII outflows.
So will the worst fear of market participants come true in Stock market crash if Fed tapers the QE?
Lets dig into History and try to analyses Japan's experience with QE tapering in 2006.
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