Jackson Hole: economists flag costs and benefits of bloated balance sheets
Christopher Sims, Ricardo Reis and Jeremy Stein see pros and cons to big balance sheets
This year's Jackson Hole symposium brought together economists to discuss the future of monetary policy frameworks. A key question for many speakers was what impact large central bank balance sheets would have on the economy.
Christopher Sims of Princeton University, during a lunch address on August 26, analysed central bank balance sheets through a fiscal lens. He noted quantitative easing (QE) programmes at major central banks had led to balance sheets that are large enough to "generate public
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