O'Reilly logo

Central Bank Balance Sheet and Real Business Cycles by Mustapha Akinkunmi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 6 Composition of Central Bank Balance Sheet Assets

Central banks obtain assets through purchasing assets or making loans. If a central bank buys an asset, for example, a bond, it makes a payment by creating reserves or currency. This leads to an increase in its assets and liabilities by equal amounts. In the same vein, a central bank creates the new reserves that are lent if it spreads a loan. Banks are often considered as central bank’s counterparties, but some central banks accept nonbank counterparties. In a normal period, central banks’ assets mainly consist of government bonds, foreign exchange reserves, and loans to banks. Nevertheless, the relative significance of these assets differs substantially across central banks. Before ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required