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A Central Bank’s optimal balance sheet size?

Goodhart, Charles (2017) A Central Bank’s optimal balance sheet size? Discussion papers (DP12272). Centre for Economic Policy Research, London, UK.

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Unlike other facets of monetary policy renormalisation, there has been little discussion yet of what principles should determine the optimum size of a Central Bank's balance sheet, the end-point to which on-going portfolio reductions should approach. In this note I start by addressing the arguments of those who would leave this balance sheet very large, much as now; and then continue with the counter-arguments, also stressing the nature of the relationships between monetary and fiscal policies, and between the Central Bank and the Treasury's Debt Management Office.

Item Type: Monograph (Working Paper)
Official URL:
Additional Information: © 2017 The Author
Divisions: Financial Markets Group
Subjects: H Social Sciences > HG Finance
Date Deposited: 12 Sep 2017 10:56
Last Modified: 22 Dec 2020 00:28

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