Central Bank's Balance Sheet to GDP ratio

[kurtS]

http://4.bp.blogspot.com/-HQ2ekZ0eltE/UHGGSwQYcGI/AAAAAAAABnQ/bXybRMVkjag/s1600/central+bank+balance+sheets.png

 

The graphic depicts the balance sheets of the Federal Reserve, Bank of England, European Central Bank and the Bank of Japan.

What will surprise many is that the Fed's balance sheet has shrunk for nearly a year and, as a percentage of GDP, its balance sheet is not as large as the other major countries.

 

In any event, it is reasonable to expect the balance sheets of these major central banks to expand in the months ahead.

 

Does the balance sheet surprise you? What are your expectations?