We recently wrote that we live in an age of central bank heroics. But so far it’s all talk from the ECB. As we can see from the table below whereas continued asset purchases from the Federal Reserve and those announced by the Bank of Japan have significantly increased the size of central bank balance sheets in the US and Japan since the start of the year, the balance sheet of the ECB has actually shrunk to 27% of Eurozone GDP from 32%, largely as a result of €276bn of LTRO liquidity being repaid1.…
‘The ECB: Is Mario about to put on his superhero tights?’
09 May 2013
Posted by Barry Norris