Why wouldn’t it be?
This is not government debt, this is simply Central Bank balance sheet per capita (for every person in that country), and the numbers are staggering …
Continue reading “How much are Central Bank balance sheets per capita (or per person in a country)?”
The Bank of Japan has set out a guidance (or target) to buy 6 trillion Yen ($56 billion) worth of exchange traded funds (ETFs) a year, a measure designed to funnel money into the economy. It also has a policy to increase its ETF purchases if market volatility begins to hurt business confidence (as COVID-19 has)
Central Banks have grown their balance sheets significantly in the past 20 years and almost exponentially since the 2008 financial crisis. Here’s how much the balance sheets of the Bank of Japan, the Swiss National Bank, the Federal Reserve and the European Central Bank have grown in the 21st century,
Total assets: 540.8036 trillion Yen (JPY) = 4.93 trillion US Dollars (USD)
As of date: May 1, 2018
Asset size as percentage of GDP: 101% of GDP
Interesting information: The Bank of Japan has a target to buy 6 trillion Yen ($54 billion) worth of exchange traded funds a year. It now holds almost 82% of all ETFs in Japan and is indirectly the largest shareholder in many large Japanese companies, almost about half of listed companies in Japan.
Central Banks have grown their balance sheet in the past 20 years and almost exponentially since the 2008 financial crisis
Bank of Japan
Total assets: 540.8036 trillion Yen (JPY) = 4.93 trillion US Dollars (USD)
As of date: May 1, 2018
Asset size as percentage of GDP: 101% of GDP
Some 80% of 10-year Japanese government bonds are held by the Bank of Japan. And apparently there are days when no one trades those 10-year bonds because there is no point of trading it. Why? Well, because the Bank of Japan has a policy to control yield curves and since they hold majority of it there are hardly any price movements.
But is also claimed that there are days when the 2-year bonds aren’t traded. That is interesting because the Bank of Japan only holds a small proportion of 2-year bonds. How to traders keep their jobs then? They trade bond futures instead. Continue reading “Apparently, there are days when no one trades some Japanese government bonds; Could China devalue their currency or sell US Treasurys?”
At the outset, here are the countries whose Central Banks have zero or negative interest rates, Continue reading “How do Central Banks with zero or negative interest rates spend their money?”
At the outset, here are the countries whose Central Banks have zero or negative interest rates, Continue reading “What do Central Banks with zero or negative interest rates do with their (freshly printed) money?”