Central-bank liquidity and risk assets

QE, QT and the money tide

Professional - Gold & Platinum

In this lesson

Understand how central-bank balance sheets (QE and QT) and liquidity measures influence risk assets.

Key takeaways

QE (buying bonds) adds liquidity and pushes investors toward risk; QT removes it.
Net liquidity (balance sheet − Treasury account − reverse repo) is a popular analyst estimate.
M2 growth surged in 2020–21 and fell in 2022, matching boom and bear phases.
Liquidity moves markets over months; it is a backdrop, not a precise timing tool.

Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Gold and Platinum. Create your account to start learning.

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Educational information only - not financial advice.

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