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QUALITATIVE EASING IN SUPPORT OF A TUMBLING FINANCIAL SYSTEM: A LOOK AT THE EUROSYSTEM'S RECENT BALANCE SHEET POLICIES
Author(s) -
Bagus Philipp,
Howden David
Publication year - 2009
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2009.01948.x
Subject(s) - balance sheet , subprime crisis , balance (ability) , asset (computer security) , quantitative easing , financial crisis , financial system , business , face (sociological concept) , off balance sheet , economics , monetary policy , monetary economics , finance , central bank , macroeconomics , computer science , sociology , medicine , computer security , physical medicine and rehabilitation , social science
Attention has recently been drawn to compositional changes in the Federal Reserve System's asset holdings and in particular the deterioration of the balance sheet of the Fed in the face of the current crisis. However, an analysis of the balance sheet policies of the Eurosystem is still missing. In this article we fill this gap by analysing the Eurosystem's balance sheet during the recent subprime crisis. The calculation of certain balance sheet ratios supports the assessment that a significant decrease in the quality of money has occurred.