Karadi, Peter (contributor); Thaler, Dominik (contributor); … - European Central Bank - 2024
financial institutions would relax those institutions' leverage constraints and allow them to expand their balance sheets and … issue more private liquidity, in the form of deposits. However, a very large increase in the average size of its balance … sheet would expose the central bank to the risk of large financial losses. On balance, only a moderately larger supply of …