Which central bank is the most expansionary?

Who is the most expansionary of all the central banks? The ECB looks set to take additional measures in December. This week, its already done by the Riksbank while Norway had seen it in September. BoJ and RBA might also follow soon. The RBNZ did not act this time, but a weak NZD is preferred.  

Almost all large central banks are pursuing an even more expansionary policy. And those who said back in summer that they planned to gradually change their ultra-expansionary course became more cautious due to the turmoil in the emerging markets and gave the impression that they were reluctant to actually engineer a lift-off. 

While the question which central bank is pursuing the most expansionary policy is quite interesting, it is difficult to answer because each of them has taken different measures. One thing is clear, however, all of them are trying to boost inflation and weaken their currencies. And this raises additional questions. 

"How long can this race continue? The SNB's and the Riksbank's monetary policies (negative interest rates and negative interest rates combined with QE, respectively) appear to have reached the end of their useful lives. Will the potential victor, probably in a photo finish, not turn out to be the loser in the end?", says Commerzbank. 

Norges Bank has already sacrificed its inflation target to boosting economic growth. While a quick solution is unlikely, the central banks may have to reconsider their inflation targets against the background of globally low interest and inflation rates in the medium term. 

It remains to be seen whether inflation rates can remain an appropriate monetary policy target after the financial and debt crises. The main task is to find out how openly or secretly each central bank is trying to weaken its currency. 

That is not easy, as the answer ultimately hinges on the answer to the question which central bank is the most expansionary of the all.