It’s all about the size of the balance sheet when we come to arguments about who’s central bank is most reckless, isn’t it?
The Fed’s balance sheet has ballooned to nearly $3 trln. A monetary outrage that has devalued the dollar, right?
Not so fast, Kemosabe.
The ECB’s balance sheet is growing at a much faster rate and is nor 25% larger than the Fed’s and about to explode another EUR 500 bln or so if the next ECB LTRO goes like the one at the end of the year.
