TOKYO The U.S. and European central banks plan to normalize their monetary policies, but they are not exactly charging headlong into the wind-down of quantitative easing. This is because, although both economies are picking up, their targeted inflation rates remain elusive.
At the annual Economic Policy Symposium in Jackson Hole in August, in the U.S. state of Wyoming, Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi dodged the subject of monetary policy, apparently to avoid stirring concern in the international markets -- and jolting the exchange rates of emerging Asia.
