Quantitative tightening: Difference between revisions
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imported>Doug Williamson (Define positively first, rather than as the opposite of QE.) |
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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. | ||
Quantitative tightening is also known as (central bank) balance sheet reduction. | Quantitative tightening is also known as (central bank) balance sheet reduction. | ||
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* [[Quantitative easing]] | * [[Quantitative easing]] | ||
[[Category:Financial_products_and_markets]] | |||
[[Category:The_business_context]] | [[Category:The_business_context]] | ||
Revision as of 21:36, 19 January 2024
Monetary policy.
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.
