Quantitative Easing and Tightening

Quantitative Easing and Tightening

Quantitative easing (QE) involves the purchase of government securities to increase the money supply and encourage lending and investment. algostocks.com

Conversely, quantitative tightening (QT) refers to the selling of government securities to decrease the money supply and curb inflationary pressures.

Fiscal Policies and Market Impacts

Fiscal policies, including government spending and taxation, can also significantly affect the markets. Changes in tax rates, government spending on infrastructure, and social programs can influence consumer spending, corporate earnings, and investment trends.

Tax Reforms

Tax reforms, such as changes in corporate tax rates or capital gains taxes, can have a direct impact on corporate profitability and investor returns. Lower corporate taxes may lead to higher earnings and increased dividends for shareholders, making stocks more attractive.