Furthermore, if the amount of assets to be sold is significant, this can have an impact on the market conditions of the underlying assets, possibly further depressing its price. Naturally, the question remains: how quickly should policy-makers reverse their policies? On the one hand, withdrawing liquidity in such large quantities will trigger a substantial contractionary monetary policy shock.
The large size of many easing programmes will make it difficult to sell assets without a significant market impact. If it happens too quickly or abruptly, policy-makers risk choking off the economic recovery or imposing heavy capital losses on lenders.