NATSEM Seminar Series

Why Indonesia and India were not so bad after all? Lessons learned from 2013 Taper Tantrum

Tue 20 September 2016Dr Muhamad Chatib Basri / 10:00am - 11:30amThe Dryzek Room (22B13), Building 22, University of Canberra

Why Indonesia and India were not so bad after all? Lessons learned from 2013 Taper Tantrum

Abstract

In May 2013 the Fed began to talk about the possibility of ending their QE or tapering its asset purchases or bond-buying program. This resulted in capital outflow from some Emerging Market Economies to advanced countries. As a result, exchange rates in these countries weakened dramatically, and the stock and bonds markets were hard-hit. This is now known as the Taper Tantrum (TT).  The data shows that the TT impacted each country differently. Still, a group of countries experienced the worst effect. Morgan Stanley described these as the “Fragile Five” in 2013, consisting of Brazil, India, Indonesia, South Africa and Turkey. To face pressures in the financial market, these countries each undertook a series of macroeconomic policy efforts. Interestingly, Indonesia and India were able to handle the problem in the shortest time (about seven months) and succeeded in macroeconomic stabilization. This presentation will address in the questions of why Indonesia and India were able to step away from the Fragile Five and why India performs better after the TT compared to Indonesia.

Speaker

Dr Muhamad Chatib Basri, Thee Kian Wie Distinguished Visiting Professor, the Australian National University

About the Speaker

Muhamad Chatib Basri, is a former Minister of Finance of Indonesia. Previously he was the Chairman of Investment Coordinating Board of the Republic of Indonesia.  He is a Thee Kian Wie Distinguished Visiting Professor at the Australian National University (2016-2017).

He was Ash Centre Senior Fellow at the Harvard Kennedy School, Harvard University (2015-2016), Pacific Leadership Fellow at the Centre on Global Transformation, University of California at San Diego (2016) and NTUC Professor of International Economic Relations, RSIS, Nanyang Technological University, Singapore (2016). Dr Basri is also Chairman of the Advisory Board of the Mandiri Institute and Chairman of the Indonesia Infrastructure Finance. He teaches at the Department of Economics University of Indonesia and Co-founded CReco Research Institute, a Jakarta based economic consulting firm in 2010.

Dr Basri served as a Special Adviser to the Minister of Finance of the Republic of Indonesia in 2006-2010.  He also served as the Sherpa to the President of the Republic of Indonesia for G-20 meeting in Washington, November 2008 and Vice Chairman of the National Economic Committee of the President of Indonesia. His expertise is International Trade, Macroeconomics and Political Economy.

For catering and planning purposes, please RSVP to UCIGPA | at | canberra.edu.au by COB Friday 16 September 2016.

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