 "economy, india economy")
Rolling back of the pandemic-era policy accommodation and a sharp increase in the policy rate by the US Federal Reserve since March 2022 intensified fears of “taper tantrum 2.0” across emerging-market economies (EMEs). Despite concerns, however, emerging markets, including India, have shown remarkable resilience. This shows, while policy tightening in the US and other developed economies can disrupt financial markets and tighten financial conditions in EMEs, strong domestic fundamentals can help safeguard the economy from adverse economic shocks. A recent analytical article by economists at the Federal Reserve Bank of San Francisco strengthened this argument.
The article looked at the changes
