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Central Bank Balance Sheets: Expansion and Reduction since 1900

Listed author(s):
  • Niall Ferguson
  • Andreas Schaab
  • Moritz Schularick

In this paper we study the evolution of central banks’ balance sheets in 12 advanced economies since 1900. We find that balance sheet size in most developed countries has fluctuated within rather clearly defined bands relative to output. Historically, clusters of big expansions and contractions of balance sheets have been associated with periods of geopolitical or financial crisis. Relative to the size of the financial sector, central bank balance sheets had shrunk dramatically in the three decades preceding the global financial crisis. By that yardstick, their recent expansion partly marks a return to earlier levels.

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File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp5379.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 5379.

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Date of creation: 2015
Handle: RePEc:ces:ceswps:_5379
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