taper
n.a gradual decrease in something, especially when a government or bank starts to reduce financial support. It describes a slow narrowing or thinning of an amount over time.
n.a gradual reduction in the amount or thickness of something; in financial contexts, specifically the systematic reduction of central bank asset purchases. Often used to describe the transition away from expansionary monetary policy.
“The central bank announced a taper of its monthly bond purchases.”
“Investors reacted nervously to the news of a taper, fearing that reduced liquidity would lead to higher interest rates.”
“Economists debated whether a gradual taper would stabilize the currency or if a more aggressive reduction in stimulus was necessary to curb rising inflation.”
Commonly used in the singular when referring to specific economic policy shifts.
From Middle English taper, from Old English tapor (“taper, candle, wick of a lamp”), of uncertain origin. Perhaps from Latin papyrus (“papyrus", used in Mediaeval times to mean "wick of a candle”). If so, it is a doublet of papyrus. Alternatively, of Celtic origin related to Irish tapar (“taper”), Welsh tampr (“a taper, torch”); further compare Sanskrit तपती (tápati, “(it) warms, gives out heat, is hot; (it) heats”). More at tepid.
From tape + -er.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.