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The Federal Reserve System Balance Sheet :, What Happened and Why it Matters, Peter Stella

Abstract
The recent expansion of the balance sheet of the consolidated Federal Reserve Banks (FRB) is analyzed in an historical context. The analysis reveals that the nature of Fed involvement in U.S. financial markets has changed dramatically and its expansion is several orders of magnitude beyond what is usually reported. The associated fiscal risks and potential exit strategies are then considered. Although risks are considerable in certain unlikely scenarios, FRB capital, earnings capacity, and reserves are more than ample to preserve their financial independence. Nevertheless, the occurrence of losses or a significant drop in FRB profit might lead to an eventual curtailment of Fed operational independence. The paper concludes by considering options to enhance FRB risk management and to assign responsibilities for monetary, financial stability and fiscal policies once the current crisis is overcome
Table Of Contents
Contents; I. Introduction; II. The Federal Reserve Bank Balance Sheet in Historical Perspective: 1951-2008; Tables; 1. Federal Reserve Bank Consolidated Balance Sheet end-2006; Figures; 1. Federal Reserve Banks: Total Assets; 2. Federal Reserve Banks: Total Assets and Banknotes; 3. Federal Reserve Banks: Policy Assets; 4. U.S. Commercial Bank Deposits at Federal Reserve Banks; 5. U.S. Commercial Bank Deposits at Federal Reserve Banks; 6. U.S. Commercial Bank Deposits at Federal Reserve Banks; 7. U.S. Commercial Bank Liquidity Leverage; 8. U.S. Total Credit Market Assets
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (62 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462379989

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