QT is an acronym for quantitative tightening – the reverse of quantitative easing. Central banks can shrink their balance sheets through QT, either passively – by allowing bonds to mature and not replacing them – or organically – by selling them.
QT is an acronym for quantitative tightening – the reverse of quantitative easing. Central banks can shrink their balance sheets through QT, either passively – by allowing bonds to mature and not replacing them – or organically – by selling them.