In a recent post on the Bank Underground \(-\) a blog where Bank of England staff can share their views \(-\) James Barker, David Bholat and Ryland Thomas write about the past, present and future of central bank balance sheets. 

They comment on the quirks of the financial accounts of central banks and how the Bank of England historically have used their balance sheet to respond to financial crises, e.g. through quantitative easing and discounting of bills.  

Looking ahead, the authors present three interesting future developments of central bank balance sheets:

  • Issuance of digital currency
  • A more creative usage of equity for policy implementation
  • Implementation of so called helicopter money drop

More information on these subjects can be found on Bank Underground.