However, in a pure QE regime, the focus of policy is the quantity of bank reserves, which are liabilities of the central bank; the composition of loans and securities on the asset side of the central bank's balance sheet is incidental.
The second presentation after lunch deals with open market operations, drawing on the experiences of another regional central bank and should provide some useful lessons for us. We have observed the provision of liquidity by central banks in the major capitals recently as the credit crunch unfolded there. In the Caribbean, the pressure is often in the other direction – to mop up liquidity.