Quantitative tightening: Difference between revisions
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''Monetary policy.'' | ''Monetary policy.'' | ||
(QT). | |||
In relation to monetary policy, 'quantitative tightening' involves a central bank reducing its holdings of financial assets, and its effect is to decrease the money supply. | In relation to monetary policy, 'quantitative tightening' involves a central bank reducing its holdings of financial assets, and its effect is to decrease the money supply. | ||
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* [[Monetary policy]] | * [[Monetary policy]] | ||
* [[Money supply]] | * [[Money supply]] | ||
* [[Quantitative easing]] | * [[Quantitative easing]] (QE) | ||
* [[Tightening]] | * [[Tightening]] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Latest revision as of 13:15, 28 December 2024
Monetary policy.
(QT).
In relation to monetary policy, 'quantitative tightening' involves a central bank reducing its holdings of financial assets, and its effect is to decrease the money supply.
Quantitative tightening is also known as (central bank) balance sheet reduction.
It is the reverse process of quantitative easing.
