Macro Waves
Ever bigger central balance sheets raise question about where is the limit
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Ever bigger central balance sheets raise question about where is the limit

Central banks have played a key role in supporting the economy during the pandemic-induced recession. To do so, they increased the size of their balance sheet. William De Vijlder explains the mechanisms governing this increase in their balance sheet. Is there any limit on how far it might go? He also explains the concept of direct monetary financing.

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