The mystique surrounding the central bank ’ s balance sheet , applied to the European crisis

@inproceedings{Reis2013TheMS,
  title={The mystique surrounding the central bank ’ s balance sheet , applied to the European crisis},
  author={Ricardo Reis},
  year={2013}
}
The New Oxford American Dictionary defines mystique as “a fascinating aura of mystery, awe, and power surrounding someone or something”. This characterization applies to the balance sheet of a central bank. It has fascinating liabilities, dominated by currency and bank reserves, which are legal tender that cannot be converted into anything else than what they already are. There is an aura of mystery around the central bank’s accounts, which follow peculiar accounting principles like the Federal… CONTINUE READING