Tapering



This is an Anglicism that those who follow the economic news are likely to hear often in the coming months. the tapering, term borrowed directly from English, designates a gradual reduction in monetary easing measures implemented by central banks and in particular the American Central Bank (the Fed).

Central banks have been engaged for years in a policy of massive injection of liquidity into the economy in order to boost growth. This is what experts call the quantitative easing, or in literal translation “quantitative easing”.

As growth picks up and the specter of inflation resurfaces, central banks are now questioning the advisability of limiting their support. So now is the time to tapering, that is to say the gradual reduction of their interventions with a view to a return to a more traditional policy.

Contrary to what one might imagine, the word does not refer to English tap, which means tap and which could thus illustrate a gradual closure of the flow of liquidity. Tapering actually comes from the verb to type, meaning to thin, gradually reduce.

In Old English, this word referred to a candle, a reference to the time when their wick was made of papyrus fiber, teaches us the online dictionary of the University of Oxford. After deformation, the Greek papuros would have given English type. In French, if we dare say, the term tapering is not just for finance. It is often found in sport. He then describes a period when the intensity of training is reduced in the days preceding a competition.

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