Quantitative tightening: Difference between revisions
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imported>Doug Williamson (Create page. Sources: linked pages.) |
imported>Doug Williamson (Define positively first, rather than as the opposite of QE.) |
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''Monetary policy.'' | ''Monetary policy.'' | ||
In relation to monetary policy, 'quantitative tightening' is the | 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. | |||
Revision as of 13:51, 25 April 2019
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.
