Central Banks & Balance Sheet Policy

Quantitative easing is only one way in which central banks can use their balance sheets to ease the banking crisis. Indeed, the ECB prides itself on eschewing QE although its latest liquidity injections seek to achieve similar LOLR outcomes.


For estimates on how central bank balance sheets are ballooning into 2012 have at look at the following:

ECB mulling alternatives to bond-buy plan, Reuters, 17 Jan 2012
Central banks fire the second barrel of QE, Financial Times, 11 Dec 2011
Banks gorge on ECB loans, market cheer short-lived, Reuters, 21 Dec 2011
ECB balance sheet sucked further into the crisis, Financial Times, 21 Dec 2011
3yr LTRO: Breaking or strengthening the banking/sovereign feedback loop?, Megan Greene, 21 Dec 2011
Banks clamour for ECB cash, The Times, 22 Dec 2011
Europe’s banks haven’t read the ECB’s wish list, The Times, 22 Dec 2011