«With roughly $ 15 trillion on
the major central bank balance sheets, with all of these rates at zero or even crazily below zero, you have a very delicate situation which can not be solved by a sledgehammer,» Singer added.
Those who worry that the increase in reserves caused by cash transfers to households will cause inflation or create
major central bank balance sheet problems down the road, no longer need to oppose this policy.
Not exact matches
The BoJ has been the least expansionary of
major central banks since the 2007 - 2008 global financial crisis, Evans said, adding that its planned
balance -
sheet increase this year pales by comparison with the $ 1 trillion of assets that the U.S. Federal Reserve is slated to purchase.
«Finally, in circumstances where a
major central bank is continuing to expand its
balance sheet or maintaining a large
balance sheet over a sustained period, this policy would likely exert downward pressure on term premiums around the globe, especially in those foreign economies whose bonds were perceived as close substitutes.