(1)  Don’t take the central bank’s balance sheets as a measure of monetary easing  First, do not assume the size of the central bank’s balance sheets is indicative of the degree of monetary easing. Many unconventional policy measures are designed to be selective and are tailored to a specific market dysfunction. Thus, there is no common yardstick evaluating all market intervention.
Moreover, the usage of unconventional policy facilities declines as market functions improve. Shrinkage of a central bank’s balance sheet reflecting this mechanism should not be interpreted as a monetary tightening but rather as a sign of improving market conditions.