The Size of ECB’s Balance Sheet Will Surpass the Fed’s in Just Eight Months
by Jennifer Thomson of GaveKal Capital,
Fun fact of the day: the ECB’s decision to extend its asset purchase program to the end of 2017, albeit at a slightly slower pace than the current €80B per month, puts it on track to surpass the Fed’s current $4.4B level of assets sometime around next August (all else equal):
For reference, the current level of assets on the ECB’s balance sheet represents about one third of euro area GDP while Fed assets currently represent just a quarter of U.S. GDP.
