Hasenstab: Japan can help prevent a global tapering crisis

Franklin Templeton's fixed income head Michael Hasenstab has said Japan's stimulus programme will help support the global recovery and offset tighter monetary policy from the US Federal Reserve.

Hasenstab (pictured), CIO of global bonds at Franklin Templeton's fixed income group, said a recent trip to Tokyo helped him understand the context of the Federal Reserve's ongoing tapering of its quantitative easing programme. Global markets reacted badly to the first sign of tighter policy from the Fed last summer, and the implications of a tighter policy environment remain uncertain for the likes of emerging markets in particular. But Hasenstab pointed to the Bank of Japan's own quantitative easing policies as a key factor driving his belief that continued tapering will not produce...