Why is market more concerned about Fed than India?

After the Lehman crisis the world has changed dramatically; financial institutions crumbled and suddenly overnight the world became much more global. We became much more sensitive and interconnected to what was happening from the seven seas away which has perhaps given birth to a new kind of financial institution across the world. We became more concerned with what was happening in the US rather than in India and that stays to this day.

However, the one lingering feature of this year has been talk about the Federal Reserve and that much debated term ‘quantitative easing’. What is it mean, why is it that in financial market in India, we are so sensitive to what is happening over there and what is new about this year; the new term is ‘tapering’ which we will discuss in detail with Jim Walker, Founder & MD, Asianomics.