Central banks have not been able to reduce their balance sheet after a QE. Even Fed was very hesitant in the second half of 2010s. They “don’t know” the impact they say but I suspect they fear too much market volatility if they exit. Also the pol economy of it is hard.
— Piroska Nagy-Mohacsi (@NagyMohacsi) November 18, 2022
h/t Boo_Randy
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