Balance Sheet comparisons of Fed, ECB and BoE..

Well there is tons of research and discussion on central bank balance sheets and even comparing who did what.

However, this brief note from Ricardo Davico and Brian John Goldsmith of IMF is one of the simplest and neatest so far.

Although each of the central banks had a different approach, all three acted aggressively to inject liquidity into their economies and promote growth.

  • The BOE engaged in a targeted quantitative easing policy that focused mostly on the purchase of government securities. Since March 2009, the BOE’s purchases of government securities (called gilts) have totaled 14 percent of GDP. 
  • ECB has conducted a range of measures, including long-term financing operations and a limited securities market program for sovereigns.
  • The Fed’s quantitative easing used purchases of both government bonds and mortgage-backed securities to reduce long-term yields, especially on residential mortgage rates.

Neat graphs which show the asset side of the three central banks. They have summarised all the assets under three categories for simplicity:

  • Claims on govt. (Fed and BoE show gains here)
  • Claims on pvt sector (Fed)
  • Claims on banks (ECB)

Since Aug-2007, BoE bal sheet has gained the most:

Since the onset of the subprime mortgage crisis in August 2007, the BOE’s balance sheet has grown 380 percent; the Eurosystem’s has mushroomed by 241 percent; and the Fed’s has grown 221 percent.

Nice simple stuff..

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