Damiano Sandri

Jun 6, 2024 | bis.org | Sarah Caroline Bell |Jon Frost |Boris Hofmann |Damiano Sandri

Historically, central banks have at times operated successfully with negative equity. This indicates that a negative equity position of the central bank can be fully consistent with preserving trust in money. In addition, there is no evidence of any systematic relationship between the equity position of central banks and their ability to meet their monetary policy objectives.