Roubini : The ECB to Start its own QE after The FED 's Taper | NOURIEL ROUBINI BLOG

Sunday, December 22, 2013

Roubini : The ECB to Start its own QE after The FED 's Taper

Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC, told Switzerland’s Finanz und Wirtschaft that Germany’s Bundesbank was unlikely to oppose the ECB starting a quantitative easing programme. The paper reported Roubini as saying that while the Fed will begin to taper its QE next spring at the latest, the ECB will be forced into its first QE measures at some point next year, no matter what the Bundesbank says.Some economists are seeing the Fed as caught in its own trap. If the macro data improves, monetary conditions worsen via rising yields (as investors switch from risk-free government debt to more risky assets), and the central bank refrains from tapering. Conversely, if the data disappoints, the Fed can’t taper either. Asked about his view, Roubini maintained his conviction that tapering will become a reality sometime between January and March. Roubini also recalled that since last May, when the Fed first started to coach markets on the notion that its unconventional monetary policy would not last forever, the central bank has also been obliged to reassure the markets that low yields would endure after the start of tapering, via the “forward guidance” mechanism.
read more @ invezz.com

Nouriel Roubini

Nouriel Roubini

Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics

Nouriel Roubini, (born March 29, 1958, Istanbul, Turkey), Turkish-born American economist and educator who was best known for predicting the 2007–08 subprime mortgage crisis in the United States and the subsequent global financial crisis.

Born to Iranian Jewish parents, Roubini moved with his family to Iran and Israel before they settled in Italy in 1962. After a year at Hebrew University of Jerusalem, he studied economics at Bocconi University in Milan (B.A., 1982) and Harvard University (Ph.D., 1988), where he specialized in macroeconomics and international economics. He joined the economics faculty at Yale University in 1988 and taught there until 1995, when he moved to New York University. He also served as a visiting scholar to the International Monetary Fund (IMF), was a research associate with the National Bureau of Economic Research (NBER), held single-year terms on the White House Council of Economic Advisers (1998–99) and at the U.S. Department of the Treasury (1999–2000), and cofounded (2004) the consulting firm Roubini Global Economics. Roubini spent much of his early career studying countries that experienced extreme economic failures, such as Mexico (in 1994), Thailand and other countries associated with the 1997 Asian financial crisis, Russia (1998), and Argentina (2000). He determined that each shared one common element: a massive current account deficit.(www.britannica.com)

Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.