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Fiscal implications of the Federal Reserve's balance sheet normalization
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| Authors and Corporations: | , , , , , |
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| Other Authors: | Del Negro, Marco [Author] • Frame, W. Scott 1968- [Author] • Grasing, Jamie [Author] • Malin, Benjamin A. [Author] • Rosa, Carlo [Author] |
| Type of Resource: | E-Book |
| Language: | English |
| published: | |
| Series: |
Federal Reserve Bank of New York: Staff reports ; no. 833 (January 2018)
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| Subjects: | |
| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| Summary: | The paper surveys the recent literature on the fiscal implications of central bank balance sheets, with a special focus on political economy issues. It then presents the results of simulations that describe the effects of different scenarios for the Federal Reserve's longer-run balance sheet on its earnings remittances to the U.S. Treasury and, more broadly, on the government's overall fiscal position. We find that reducing longer-run reserve balances from $2.3 trillion (roughly the current amount) to $1 trillion reduces the likelihood of posting a quarterly net loss in the future from 30 percent to under 5 percent. Further reducing longer-run reserve balances from $1 trillion to pre-crisis levels has little effect on the likelihood of net losses. |
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| Physical Description: | 1 Online-Ressource (circa 47 Seiten); Illustrationen |