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Quantitative tightening in the euro area
The Sound of Economics
The Importance of QT in Europe
The ECB is now effectively selling it out of debt, right? It actually introduces a comment? If it's not selling, it's letting mature and letting mature it very gradually. So I think basically the most important reason to do QT is that actually it makes QE more conventional in the Eurozone. There are limits to the quantity of assets that the Euro system can hold. And basically you need sometimes to go down if you want to go up later. But there is a risk of central banks holding so many government bonds and being forced to kind of buy up more to finance whatever pet project a government might have.
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