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Edited and translated by People's Daily Online According to the Fiscal Monitoring Report recently issued by theInternational Monetary Fund (IMF), central banks of developedcountries have obtained huge amounts of seigniorage from the worldin past three years by implementing unconventional monetarypolicies, such as the quantitative easing policy. The total amountwas about 3 trillion U.S. dollars, accounting for about 8 percentof their total GDP. In the three years before 2007, it accountedfor only 1 percent of the GDP. By issuing the domestic currency, the government of every countryenjoys seigniorage, which is a profit coming from domestic currencyholders. However, the United States, Japan and developed countriesof Europe, as issuers of international reserve currencies, not onlyenjoy domestic seigniorage but also have been enjoyinginternational seigniorage (the profit given up by holder countriesof such international reserve currencies as the U.S. dollar, euroand yen) for a long period. After the international financial crisis broke out in 2008, centralbanks of developed countries adopted many unconventional policiesand measures, including buying company securities and governmentbonds from bond markets, to stabilize the bond markets andstrengthen the liquidity of the banking system. It was theso-called quantitative easing policy. The Federal Reserve System launched the quantitative policy twicein 2008 and 2010 and directly purchased huge amounts of real estatebonds and government bonds from bond markets. The central bank of Europe also selected and purchased somegovernment bonds from bond markets after a sovereign debt crisisoccurred in Greece in 2010. As the European sovereign debt crisis was worsening and spreading,the central bank of Europe also launched two large-scale long-term refinancing operations, taking government bonds asmortgage to provide low-interest loans to commercial banks. The total government bonds held by the central bank of the UnitedKingdom had also sharply increased from accounting for 2 percent ofthe GDP in 2008 to 20 percent in 2011. The government bonds held by the central bank of Japan alsoaccounts for 20 percent of the GDP. The implementation of the quantitative easing policy has greatlyincreased the scales of assets and liabilities. 1 2. The e-commerce company in China offers quality products such as Porcelain Fused To Metal , Dental Night Guard, and more. For more , please visit IPS e.max today!
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