The impact of Great Recession on central bank balance sheet
The impact of Great Recession on central bank balance sheet

Summary/Abstract: The financial crisis that began on the real estate market in the USA resulted in relevant chan ges in the theory and practice of monetary policies. It lead to an appraisal of unconventional monetary policies, in which a special place is held by balance-sheet policy. These types of actions were taken by significant numbers of central banks. A direct result of the balance-sheet policy conducted by the central bank is an increase and change to the structure of its balance sheet. This also indicates how difficult in implementation so-called exit strategies are going to be.The aim of the article is to present the impact of the Great Recession on the central bank’s balance sheet to the Gross Domestic Product ratio. This relation is important because it unveils the scale of the central bank’s intervention into the economy during the subprime crisis. This paper contains an analysis of the balance sheet/GDP ratio in the USA, the Eurozone, the §UK and Japan.

• Details
• Contents