Quantitative tightening

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Revision as of 13:51, 25 April 2019 by imported>Doug Williamson (Define positively first, rather than as the opposite of QE.)
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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.


See also

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