Why Europe is scared of quantitative tightening

are finally getting into the swing of quantitative tightening (). The Bank of Canada has shed a fifth of its balance-sheet this year. The Bank of England held its first gilt auction on November 1st. The Federal Reserve’s balance-sheet shrank by $85bn in October, twice the size of the reduction three months earlier. But in Europe, where officials have flirted with for months, the European Central Bank () is yet to let go of a single bond. The continent’s central bankers have sent mixed messages about when will arrive. In September Christine Lagarde, the ’s president, said details would be provided after the bank finished raising interest rates. At a meeting on October 27th the promised to lay out “key principles” in December. Five days later, Joachim Nagel of the Bundesbank said that Germany expected in early 2023. Pablo Hernando de Cos of Spain’s central bank sharply retorted that a longer wait was required.