Since the financial crisis in 2007–08, central bank balance sheets in advanced economies have expanded significantly. This expansion has not led to inflation risks (at least not to date), but it has raised concerns about financial stability, which have been especially vocal in the euro area....

We use a dynamic factor model to provide a semi-structural representation for 101 quarterly US macroeconomic series. We find that (i) the US economy is well described by a number of structural shocks between two and five. Focusing on the four-shock specification, we identify, using sign...