Chapter 5 Evolution of Central Bank Balance Sheets and Their Heterogeneous Dimensions

An increased size of central bank balance sheets arose from the financial crisis of 2007–2009. This chapter discusses what makes central bank balance sheets different across regions and countries, and how they have evolved over time. Furthermore, factors that will bring more evolution to central bank balance sheets in the future are examined.

5.1What Makes Central Bank Balance Sheets Special?

Central bank balance sheets consist of assets and liabilities, like any other balance sheet. But, the composition of central bank balance sheets is somewhat different. Figure 5.1 shows typical assets and liabilities common to central banks. The mix of these assets and liabilities ...

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