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Fiscal and Central Bank Accounting

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Interpretation and analysis of fiscal and central bank accounts, accounting systems and their interrelations  

Although there are general international agreements on proper fiscal accounting to which most countries subscribe, central bank accounting is idiosyncratic. This opens a veritable Pandora’s box for sovereigns to cosmetically improve accounts through treasury central bank fiscal relations. Starting in the mid-1980s we have been leaders in both analytical analysis of treasury central bank fiscal interactions and statistical issues. We are also in the global forefront in modeling central bank balance sheets both under stress test scenarios and under different accounting regimes addressing questions such as:

Do central banks need capital and, if so, how much? How do fiscal relations among treasuries and central banks impact central bank credibility and measured fiscal accounts? The impact of central bank unconventional policies on cash-based and commitments-based deficit measures. Should central bank debt and the monetary base be considered government debt? How did the United States Treasury assist the Federal Reserve with monetary policy during the crisis and will there be a quid pro quo for the exit strategy?