The expansion of central bank balance sheets in emerging Asia: what are the risks?

BIS Quarterly Review  |  June 2012  | 
04 June 2012

Central bank balance sheets in emerging Asia expanded rapidly over the past decade because of the unprecedented rise in foreign reserve assets. The corresponding expansion of the central banks' liabilities has created dangers - risks of inflation and financial instability and financial market distortions - that require attention.

JEL classification: E58, E61.