I've compared the central bank balance sheets of many countries and I've found some numbers strange for me. The balance sheet of a central bank should include all the assets on one side and all the equity and liability on the other side (resources).
|Gold reserve||currency in circulation|
So, if the assets and resources should balance, parts of resources should be less than the total assets and vice versa. On this web site I find:
- a total asset for the FED balance sheet of ~8676 billions of \$,
- while M0 is 5410 billions of \$ and
- M2 is 21503 billion \$
My first doubt is the following: according to the balance, M2 < total assets? Because it is not, why this happens?
Then I read also the balance sheet of the EU Central Bank:
- total asset: 8764 billions of \$ (I converted all the values to \$)
- Money Supply M0: 11704 billions of \$
- Money Supply M2: 15397 billions of \$
So in the case of the European Central Bank, the printed circulating money is more than the total assets. Why? How is it possible? What's the point I'm missing? What's the right calculation I should do?