A Cardiograph of the Dollar´s Quality: Qualitative Easing and the Federal Reserve Balance Sheet during the Subprime Crisis

In this article, co-authored with Markus Schiml, and published in Prague Economic Papers, 3, 2010, pp. 195-217, we argue that the balance sheet of a central bank contains valuable information for th quality of a currency. We analyze the qualitative and quantitative easing of the FED from June 2007 to December 2008. The calculation of certain balance sheet ratios supports the assessment of an important decrease of the quality of the currency.