Central banks must reckon with the costs of quantitative easing
Losses from asset purchases raise questions about the wisdom of the policy, writes Jagjit Chadha
In common with many other central banks, Sveriges Riksbank recently outlined the losses it is likely to suffer from its asset purchase programme at some Skr61 billion ($6 billion, around 1% of Swedish GDP) and has sought a recapitalisation. In a helpful and transparent analysis, the Swedish National Audit Office concluded that the programme “has not been effective”, and led to substantial fiscal costs and other adverse side-effects.
These sentiments are echoed in the 2021 report from the House of
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