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The ECB has 2x the portfolio size as a share of GDP as what the Fed does. The Bank of Japan's portfolio is about 4x the Fed on that metric. Why isn't the Euroz
by adventured 6y ago
The ECB has 2x the portfolio size as a share of GDP as what the Fed does. The Bank of Japan's portfolio is about 4x the Fed on that metric.
Why isn't the Eurozone collapsing, with interest rates skyrocketing and the Euro imploding?
Somehow Japan is still managing - despite a public debt & budget situation several times worse than the US - with a GDP per capita still on par with Britain, France, and just below Germany. And yet all the armchair experts endlessly predict the demise of the US.
- baconandeggs 6y agoBecause the US is the biggest debtor in the history of humanity and is supporting (in a symbiotic relationship) all those countries you listed who are also at risk of collapsing.
- pieno 6y agoNot really. ECB balance of assets purchased: €2.9tn(August 2020) Eurozone GDP: €11.9tn (2019) So 24% Fed balance of assets purchased: $6.3tn (September 2020) US GDP: $21.4tn (2019) So 29% Even if you look at total assets on the balance sheet (Including assets purchased outright and collateralised loans), the difference is not that huge: ECB: €4.7tn (39%) Fed: $7.0tn (32%)
- mrep 6y agoSource for ECB? FRED says they've got about 6.458 trillion euros [0] and the english version of the ECB website says they had 4.6 trillion at the end of 2019 which also matches the FRED and they haven't updated it since then [1]. [0]: https://fred.stlouisfed.org/series/ECBASSETSW https://fred.stlouisfed.org/series/ECBASSETSW [1]: https://www.ecb.europa.eu/pub/annual/balance/html/index.en.html https://www.ecb.europa.eu/pub/annual/balance/html/index.en.h...