The Basics #10: Quantitative Tightening
In the strictest, most basic sense QT is the opposite of QE but only the respect of the Fed’s balance sheet. What that ultimately means is made into an open question by the usual myths and conjecture about bank reserves. The fact that even Federal Reserve researchers admit serious questions remain surrounding both QT and QE should put this all to rest. If not, then Basics #10 will.
