A dynamic analysis of active operations of reserve-currency central banks under another uncertainty

Abstract

Subject. This article discusses the active operations of central banks of reserve currencies in conditions of uncertainty for the period from 2006 to 2021. Objectives. Based on the consideration of the features of the monetary policies of reserve-currency central banks for the period from the Great Recession to the COVID-19 pandemic, the article aims to conduct a dynamic analysis of the structure of their active operations and propose areas for improving the issue policy of the world's leading central banks. Methods. For the study, I used the methods of comparative and dynamic analyses, synthesis, and scientific abstraction. Results. The article describes the peculiarities and distinctions of active operations of the Federal Reserve System, the Bank of Japan, the European Central Bank, and the People's Bank of China. Conclusions. In 2020, the central banks of reserve currencies increased their assets by almost 42%, or 8 trillion US dollars, but they had been engaged in asset increasing before the COVID-19 pandemic. However, despite such an increase in assets, banks failed to restore the economy in their countries after the Great Recession and switch to conventional methods of monetary regulation.