“Taper Tantrum” Threatens Economic Recovery

Valuable lessons from the US more or less indicate that the success of the vaccination program is one of the key factors in the economic recovery of the superpower.

Lately, there has been a lengthy discussion regarding the potential emergence of a "taper tantrum" phenomenon as the impact of the United States\' monetary policy in the near future.

The term “taper tantrum” became popular in 2013 when the chairman of the United States’ Federal Reserve (the Fed) tried to ease the expansionary monetary policy following recovery in the country’s economy. Previously, the expansionary monetary policy was carried out through quantitative easing, by channeling more liquidity into the market through the purchases of bonds issued by the US government.