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From quantitative easing to quantitative tightening

In this article Barry Harrison and Robert Nutter examine some of the effects of quantitative easing and the potential impact of quantitative tightening, now that the programme of quantitative easing is being reversed

Bank of England building.
© I-Wei Huang/stock.adobe.com

monetary policy, financial markets and interest rates, macroeconomic objectives and policy conflicts, the role of government in the macroeconomy

A primary activity of the Bank of England is to buy and sell government securities. Quantitative easing (QE) involves the Bank of England buying long-dated government debt, and quantitative tightening (QT) involves selling long-dated government debt.

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Previous

Demand, supply and baking in the pandemic

Next

Fiscal policy: The economics of a universal basic income

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