Macroeconomics

Quantitative Tightening

Definition

What is Quantitative Tightening?

A reduction in central-bank asset holdings or liquidity support.

Example in practice

Bond yields may rise as quantitative tightening reduces a large source of demand.

Keep learning

The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

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