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Econ Focus cover photo

Sept. 6, 2022

Richmond Fed Looks at Quantitative Tightening

The Federal Reserve has begun reducing the size of its balance sheet as it shifts from stimulating an economy in crisis to tackling inflation. But balance sheet policy is a comparatively new tool in the Fed’s toolkit, giving rise to uncertainty about how this tightening will affect the economy. The latest issue of the Richmond Fed’s Econ Focus magazine looks at the effects of quantitative easing and the expected effects of quantitative tightening.

Also in this issue:

  • Supply chain disruptions, inflation and the Fed. Snarls in complex global supply chains have contributed to rising prices. How much of today’s inflation has come from supply chains, and how much is due to other factors, such as workers leaving the workforce and stimulative monetary and fiscal policies? What role can monetary policy play in addressing supply shocks?
  • Getting paid to relocate to rural areas. Communities across the country are using cash and other incentives to entice remote workers, as well as others looking for a change, to relocate to their areas.
  • Boosting the supply of teachers. Richmond Fed researchers look at indicators of teacher supply and demand — and what school districts and other institutions are doing to address the shortfall in the classroom.
  • The rise of the shopping mall — and its future. Shopping centers got their start in Baltimore in 1907 with the opening of the Roland Park Business Block, a complex of six shops. The modern shopping mall began to emerge in the 1950s, becoming an economic and cultural force. More recently, the emergence of online retail and now the pandemic have thrown their future into question.
  • Interview. Columbia University economist Stephanie Schmitt-Grohé on inflation and capital controls.
  • More. Coverage of other economic issues affecting the Fifth Federal Reserve District and the nation.

    For a free print subscription to Econ Focus, the economics magazine of the Richmond Fed, or for copies, sign up or call (800) 322-0565. Sign up for a free email subscription. The articles also are available online.


    As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District — including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia — to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

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    Jim Strader (804) 697-8956 (804) 332-0207 (mobile)