There are also papers suggesting that the link between central bank finances and policy outcomes is not straightforward, and that other aspects are crucial, too. For example, Ueda (2004) wrote: “Summing up the experiences of insolvent central banks, my conclusion is that the maintenance of a sound balance sheet is, in general, neither a necessary nor a sufficient condition for fulfilling a central bank’s responsibility, but there have been cases where an unhealthy balance sheet became a major obstacle to price stability.” In a similar vein, Cukierman (2011) acknowledged the role of the central bank’s capital for preserving its.
