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  • Analytický komentár

Central bank balance sheets in the new normal

  • Gertler Pavel
    vedúci oddelenia makroekonomického výskumu
  • Zeman Juraj
16 nov 2017
The central banks’ balance sheets increased considerably in size in the aftermath of the crisis to previously unprecedented levels. This poses a dilemma for policymakers whether, to what extent, and how quickly to downsize the balance sheets or whether to keep balance sheets at current elevated levels. This note discusses pros and cons of elevated balance sheet, potential costs of winding down, and additionally elaborates on whether different mandates of central banks and/or different monetary policy setups provide different incentives to respond to this issue.