An analysis regarding the transition from quantitative easing to quantitative tightening in the Euro Area

Laura-Mădălina IACOB (pîrșcoveanu)
Additional contact information
Laura-Mădălina IACOB (pîrșcoveanu): Bucharest University of Economic Studies, Romania

Theoretical and Applied Economics, 2023, vol. XXX, issue 2(635), Summer, 63-72

Abstract: In the context of accelerating inflation growth in 2021-2022 in the Euro Area, the ECB is considering tightening monetary policy, i.e. moving from a quantitative easing (QE) monetary policy that has been practiced for almost a decade in the Euro Area to a quantitative tightening (QT) monetary policy. This article examines what this transition entails as QE provides an easing of financial conditions on a broader scale by reducing long-term interest rates, while the adoption of QT should have the opposite effect, although not necessarily of the same magnitude, i.e. reducing the size of a central bank's asset balance sheet.

Keywords: monetary policy; quantitative tightening; quantitative easing; Euro Area. (search for similar items in EconPapers)
Date: 2023
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/articole/1660.pdf (application/pdf)
http://www.ectap.ro/articol.php?id=1660&rid=151 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:2(635):y:2023:i:2(635):p:63-72

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().