01745cas a2200241 a 4500 AALejournalIMF011619 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463931193 1018-5941 BD-DhAAL BD-DhAAL Park, Seok. Central Banks Quasi-Fiscal Policies and Inflation / Seok Park. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Although central banks have recently taken unconventional policy actions to try to shore up macroeconomic and financial stability, little theory is available to assess the consequences of such measures. This paper offers a theoretical model with which such policies can be analyzed. In particular, the paper shows that in the absence of the fiscal authorities' full backing of the central bank's balance sheet, strange things can happen. For instance, an exit from quantitative easing could be inflationary and central banks cannot successfully unwind inflated balance sheets. Therefore, the fiscal authorities' full backing of the monetary authorities' quasi-fiscal operations is a pre-condition for effective monetary policy. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2012/014 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/014/001.2012.issue-014-en.xml IMF e-Library