Tapering: meaning, definitions and examples
📉
tapering
[ˈteɪpərɪŋ ]
Definition
financial policy
Tapering refers to the gradual reduction of the pace of asset purchases by a central bank, aimed at decreasing the amount of stimulus in the economy. This action is typically implemented following a period of quantitative easing, when a central bank has been buying government bonds to inject liquidity into the financial system. The intention behind tapering is to carefully manage inflation and signal confidence in the economic recovery while preventing abrupt disruptions that could arise from sudden tightening of monetary policy.
Synonyms
diminishing, lessening, reducing.
Examples of usage
- The Federal Reserve announced tapering of its bond-buying program.
- Market reactions often fluctuate during periods of tapering.
- Investors closely monitor tapering announcements for interest rate changes.
Interesting Facts
Etymology
- The term 'taper' comes from the Middle English word 'taper', which referred to a candle that is narrow at one end.
- In Old French, 'taper' meant 'to make thin', reflecting the gradual reduction in size.
- The usage of tapering in modern contexts has evolved beyond physical shapes to include economic and physical processes.
Science
- In biology, tapering can describe the shape of certain organisms, such as fish or insects, enhancing their movement through water or air.
- In physics, tapering is often utilized in engineering to improve airflow in structures like airplane wings.
- Geometric tapering is crucial in the design of various objects, from architecture to product design, impacting both aesthetics and functionality.
Art and Design
- Tapering techniques in sculpture help create dynamic forms that draw the viewer's eye along a pathway.
- In graphic design, tapered lines can create a sense of movement or focus, guiding the viewer's attention.
- Architectural elements often feature tapering, such as columns that are wider at the base for stability and narrower at the top for elegance.
Health and Fitness
- In physical training, a tapering phase can involve gradually reducing exercise intensity or volume, helping athletes recover and perform at their best.
- Tapering strategies are common in marathon training, where runners slowly decrease their mileage before a race day.
- Understanding tapering is essential in creating effective meal plans, especially for individuals seeking weight loss or muscle gain.
Economics
- Tapering refers to the gradual reduction of stimulus measures in monetary policy, which can influence market reactions.
- The term was widely discussed following the 2008 financial crisis when the Federal Reserve began tapering its bond-buying program.
- Investors pay close attention to tapering announcements, as they can signal shifts in economic stability and future investment strategies.
Translations
Translations of the word "tapering" in other languages:
🇵🇹 redução gradual
- afunilamento
- estreitamento
🇮🇳 कम करना
🇩🇪 Abschmelzen
- Verengung
- Reduzierung
🇮🇩 penyusutan
🇺🇦 звуження
🇵🇱 stopniowe zmniejszenie
🇯🇵 テーパリング
🇫🇷 réduction progressive
🇪🇸 reducción gradual
🇹🇷 azaltma
🇰🇷 점진적 감소
🇸🇦 تقليل تدريجي
🇨🇿 postupné snižování
🇸🇰 postupné znižovanie
🇨🇳 逐步减少
🇸🇮 postopno zmanjšanje
🇮🇸 smáminnkun
🇰🇿 постепенное қысқарту
🇬🇪 პროგრესული შემცირება
🇦🇿 tədricən azalma
🇲🇽 reducción gradual