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The importance of central bank reserves

LSE: Public lectures and events

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Managing Central Bank Reserves and Liquidity

This chapter explores the historical evolution of central bank reserves and liquidity management, emphasizing the importance of distinguishing between monetary policy and financial stability. It discusses the challenges faced during crises, the debate on reserve levels, and the ongoing process of unwinding quantitative easing assets. The chapter also delves into the implications of different liquidity provision methods and the evolving landscape of central bank balance sheets.

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