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Thursday, February 9, 2012
Central Bank Balance Sheet Growth Comparison
With the BOE announcing another 50B pounds of QE and the ECB on the verge of a possible Trillion Euro LTRO, global central banks are at the printing presses once again. Below is a chart comparing the relative growth of the ECB, BOE and Fed balance sheets. Even though the ECB is making a big push to catch up to the Fed and BOE, it has not yet printed nearly as much money as the Fed and BOE have.
Is another push from the Fed coming soon? In order to keep relative exchange rate stability the Fed might have to. Otherwise it's conceivable that the dollar could strengthen against the Euro and Pound simply because other central banks are beating Bernanke at his own game.