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Grant Wilson

Quantitative tightening may go active, on both sides of the Tasman

Quantitative tightening has two variants – passive and active – and the RBA and RBNZ should be considering both as policy options.

The continuing surge in global inflation is intensifying criticism of large-scale asset purchases by central banks. Quantitative easing, as it has come to be known since the global financial crisis, is no longer an esoteric concept, nor a walled-off expert domain.

It is a lived experience that risks becoming a lightning rod.

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Grant Wilson is Executive Chair of Tivan Limited, a critical minerals company with major project status in the Northern Territory. He sits on the Advisory Board of Exante Data, Inc, a macro advisory and data analytics company based in New York. Connect with Grant on Twitter.

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    Original URL: https://www.afr.com/markets/debt-markets/quantitative-tightening-may-go-active-on-both-sides-of-the-tasman-20220213-p59w1i