What does quantitative tightening mean?

Definitions for quantitative tightening
quan·ti·ta·tive tight·en·ing

This dictionary definitions page includes all the possible meanings, example usage and translations of the word quantitative tightening.

Wikipedia

  1. Quantitative tightening

    Quantitative tightening (QT) (or quantitative hardening) is a contractionary monetary policy applied by a central bank to decrease the amount of liquidity within the economy. The policy is the reverse of quantitative easing (QE) aimed to increase money supply in order to "stimulate" the economy. The QE policy was massively applied by leading central banks to counter the Great Recession that started in 2008. The prime rates were decreased to zero; some rates later went into the negative territory. For example, to fight with ultra-low inflation or deflation caused by the economic crisis, the European Central Bank, overseeing monetary policy for countries that use the euro, introduced negative rates in 2014. The central banks of Japan, Denmark, Sweden, and Switzerland also set negative rates.The main goal of QT is to normalise (i.e. raise) interest rates in order to avoid increasing inflation as it becomes expensive to access money and reduces demand for goods and services in the economy. Like QE before it, QT has never been done before on a massive scale, and its consequences have yet to materialize and be studied. In 2018, the Fed began retiring some of the debt on their balance sheet, beginning quantitative tightening. In 2019, less than a year after initiating QT, central banks, including the Fed, ended quantitative tightening due to negative market conditions occurring soon after.

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Numerology

  1. Chaldean Numerology

    The numerical value of quantitative tightening in Chaldean Numerology is: 3

  2. Pythagorean Numerology

    The numerical value of quantitative tightening in Pythagorean Numerology is: 2

Examples of quantitative tightening in a Sentence

  1. First Franklin Ewing:

    Ending the quantitative tightening right here was also a good call.

  2. Frederic Neumann:

    What will prompt investors to scurry about will be the guidance Chair Powell might give at his press conference about quantitative tightening later in 2022.

  3. Bill Campbell:

    Ultimately, increased federal deficits and expanded Treasury issuance to fund those deficits, combined with a reversal in investor appetite for that growing supply of Treasuries, will bring pressures back into money markets, these markets are already taut due to the quantitative tightening (QT) done so far and increased regulation since the global financial crisis.

  4. Donald Trump:

    China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go up like a rocket if we did some lowering of rates, like one point, and some quantitative easing, yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records (and) at the same time, make our National Debt start to look small!


Translations for quantitative tightening

From our Multilingual Translation Dictionary

  • resserrement quantitatifFrench

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"quantitative tightening." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/quantitative+tightening>.

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