Live preview mode. Wire is not yet published.
What Happened The Last Time A Major Central Bank Tapered QE
What Happened The Last Time A Major Central Bank Tapered QE? After having followed a zero interest rate policy strategy and facing a further deteriorating economy in an environment of falling prices (deflation), the Bank of Japan (BoJ) announced the introduction of QE on 19 March 2001 and kept it in place until 9 March 2006. The BoJ chose for a very orderly and gradual unwinding of its government securities portfolio, by continuing its regular purchases of these securities (i.e a taper and not sale). The market rejoiced at the normalization for a week or 2... before dropping 24% in the following 2 months. See all the graphs here... (VIEW LINK)
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Tom McKay is the Co-Founder and Managing Director of Livewire. Tom's passionate about democratising access to high quality investment ideas and insights, so all investors can make more informed and successful investment decisions.
Comments
Comments
Sign In or Join Free to comment