# Tapering

*Macro & Economy — Finicade finance glossary*

Tapering is slowing the pace of central bank asset purchases — still buying, just less. The distinction from tightening is lost on markets, as 2013's taper tantrum demonstrated when a hint of slower purchases sent Treasury yields up more than a percentage point. That episode permanently changed communication practice: taper plans are now telegraphed months ahead to price the news in gradually.

**Also known as:** taper, taper tantrum, balance sheet runoff

**Related terms:** [Quantitative Easing](https://finicade.com/glossary/quantitative-easing), [Forward Guidance](https://finicade.com/glossary/forward-guidance), [Monetary Policy](https://finicade.com/glossary/monetary-policy), [Yield Curve](https://finicade.com/glossary/yield-curve), [Central Bank](https://finicade.com/glossary/central-bank)

Source: https://finicade.com/glossary/tapering