Home  Journals  Finance and Credit  2(818) - 2022 February

A dynamic analysis of active operations of reserve-currency central banks under another uncertainty

Received: 8 November 2021

Received in revised form: 29 November 2021

Accepted: 13 December 2021

Available online: 28 February 2022

Subject Heading: MONETARY ACCOMMODATION

JEL Classification: Е52, Е58, F53

Pages: 412–439

https://doi.org/10.24891/fc.28.2.412

Subject. This article discusses the active operations of central banks of reserve currencies in conditions of uncertainty for the period from 2006 to 2021.
Objectives. Based on the consideration of the features of the monetary policies of reserve-currency central banks for the period from the Great Recession to the COVID-19 pandemic, the article aims to conduct a dynamic analysis of the structure of their active operations and propose areas for improving the issue policy of the world's leading central banks.
Methods. For the study, I used the methods of comparative and dynamic analyses, synthesis, and scientific abstraction.
Results. The article describes the peculiarities and distinctions of active operations of the Federal Reserve System, the Bank of Japan, the European Central Bank, and the People's Bank of China.
Conclusions. In 2020, the central banks of reserve currencies increased their assets by almost 42%, or 8 trillion US dollars, but they had been engaged in asset increasing before the COVID-19 pandemic. However, despite such an increase in assets, banks failed to restore the economy in their countries after the Great Recession and switch to conventional methods of monetary regulation.

Keywords: quantitative easing, unconventional monetary policy, central bank balance sheet, reserve currency

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