Chapter 2 Relevance of the Central Bank Balance Sheet
2.1Understanding Relevance of Central Bank Balance Sheet in Functions of Economy
The analysis of the central bank balance sheet is important in designing and understanding the policies needed to support an economic recovery in post-financial crisis years. This book asserts that a deeper comprehension of changes to the central bank balance sheet can lead to more effective policymaking. We support this assertion by highlighting the challenges and controversies faced by central banks in the past and present when implementing policies, and analyze the links between these policies, the central bank balance sheet, and the consequences to economies as a whole.
Every country has a central bank with ...
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