Balance sheet policy needs rethink, economists say
BoE chief economist says central banks should focus more on risks of assets they buy
The Bank of England’s September intervention in the UK bond market highlights the evolution of central bank balance sheet policy, economists said today (November 14).
More central banks are using their balance sheets as a policy tool. Though a growing number have experimented with quantitative easing, there are many other tools available, from funding for lending schemes to market-maker of last resort facilities.
Lucrezia Reichlin, a professor at the London Business School, said the governance
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