Anmerkungen:
Zusammenfassung in englischer Sprache
Beschreibung:
Since the financial crisis in 2007–08, central bank balance sheets in advanced economies have expanded significantly. This expansion has not led to inflation risks (at least not to date), but it has raised concerns about financial stability, which have been especially vocal in the euro area. This short piece addresses the issue of the financial stability implications of non-standard monetary policies. It summarises views that Huw Pill and I have expressed in a more extended form in Pill and Reichlin (2017). We have argued that the effect on financial stability of central bank balance sheet expansions is ambiguous that it differs depending on the nature of such expansion, and that it is influenced by other policy actions in a complex way.