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Cavallo, Michele [Author]; Del Negro, Marco [Author]; Frame, W. Scott [Author]; Grasing, Jamie [Author]; Malin, Benjamin A. [Author]; Rosa, Carlo [Author]

Fiscal implications of the Federal Reserve's balance sheet normalization

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  • Media type: E-Book
  • Title: Fiscal implications of the Federal Reserve's balance sheet normalization
  • Contributor: Cavallo, Michele [VerfasserIn]; Del Negro, Marco [VerfasserIn]; Frame, W. Scott [VerfasserIn]; Grasing, Jamie [VerfasserIn]; Malin, Benjamin A. [VerfasserIn]; Rosa, Carlo [VerfasserIn]
  • imprint: New York, NY: Federal Reserve Bank of New York, [2018]
  • Published in: Federal Reserve Bank of New York: Staff reports ; 83300
  • Extent: 1 Online-Ressource (circa 47 Seiten); Illustrationen
  • Language: English
  • Identifier:
  • Keywords: Zentralbank ; Bankrechnungslegung ; Bilanzpolitik ; Geldpolitik ; Gewinnverwendung ; USA ; Graue Literatur
  • Origination:
  • Footnote:
  • Description: The paper surveys the recent literature on the fiscal implications of central bank balance sheets, with a special focus on political economy issues. It then presents the results of simulations that describe the effects of different scenarios for the Federal Reserve's longer-run balance sheet on its earnings remittances to the U.S. Treasury and, more broadly, on the government's overall fiscal position. We find that reducing longer-run reserve balances from $2.3 trillion (roughly the current amount) to $1 trillion reduces the likelihood of posting a quarterly net loss in the future from 30 percent to under 5 percent. Further reducing longer-run reserve balances from $1 trillion to pre-crisis levels has little effect on the likelihood of net losses.
  • Access State: Open Access