Does central bank capital matter? German power tandem should back Merz
Thursday 28 January 2021 – Vol.12 Ed.4.4
Commentary: Does central bank capital matter?
By Danae Kyriakopoulou and Pierre Ortlieb
The tension between central bank independence, profit and loss accounting and the structure of the Eurosystem has come into the spotlight. This is due to the rise of the European Central Bank’s balance sheet and its growing exposure to often negative-yielding sovereign bonds. Part 1 in this new series...