Graph 6  4  See the “Operations in Financial Markets” chapters in the Reserve Bank of Australia Annual Reports of 2009 and 2010 for more discussion. BIS central bankers’ speeches  5  In the US, the Fed’s program of quantitative easing has injected a large amount of liquidity into the banking system.
Moreover, the Fed’s program of asset purchases has included over $ trillion of mortgage-backed securities. Similarly in the UK, the Bank of England has conducted a large asset purchase program.