Quantitative tightening in the euro area

In March 2023, the European Central Bank (ECB) launched its
quantitative tightening (QT) policy, to unwind its portfolio of
assets that resulted from its quantitative easing (QE) policy of
the last decade. 

Despite the scarce evidence on the effects of QT, it was never
attempted in the Euro area. Most lessons can only be drawn from
the 2017-19 experience in the United States.

In this episode of The Sound of Economics, Maria Demertzis
invites Grégory Claeys and Megan Greene to discuss why the ECB
has decided to go down the route of quantitative tightening and
what it could mean for the future of the euro area.

Relevant publication:
Finding the right balance (sheet): quantitative tightening in the
euro area, report by Grégory Claeys, requested by the ECON
Committee, European Parliament