Can Central Banks Go Broke?
CEPR Policy Insight No. 24, May 2008
12 Pages Posted: 10 Sep 2014
Date Written: May 1, 2014
The paper answers three questions.
(1) Does it matter if a central bank suffers a large capital loss?
(2) Can the central bank become insolvent?
(3) When, how and by whom should the central bank be recapitalised?
Keywords: Seigniorage, central bank independence, monetary financing, base money
JEL Classification: E42, E50, E58, E52, E59, H27, H11, H63
Suggested Citation: Suggested Citation