4 SUMMARY economic stimulus, with growth in total assets Transparency also enhances the effectiveness primarily matched by higher reserve balances of monetary policy and a central bank's of depository institutions. However, liabilities efforts to promote financial stability. For other than reserves have grown significantly these reasons. the Federal Reserve uses a over the past decade. In the longer run, the wide variety of communications to explain size of the balance sheet will be importantly its policymaking approach and decisions determined by the various factors affecting the as clearly as possible. Through several new demand for Federal Reserve liabilities. ( See th initiatives, including a review of its monetary box"The role of liabilities in determinin policy framework that will include outreach he Size of the Federal reserve's balance to a broad range of stakeholders, the Federal Sheet” in Part2.) Reserve seeks to enhance transparency and accountability regarding how it pursues Federal Reserve transparency and its statutory responsibilities. (See the box accountability. For central banks, transparency Federal Reserve Transparency: Rationale provides an essential basis for accountability and New Initiatives"in Part 2.)4 SUMMARy economic stimulus, with growth in total assets primarily matched by higher reserve balances of depository institutions. However, liabilities other than reserves have grown significantly over the past decade. In the longer run, the size of the balance sheet will be importantly determined by the various factors affecting the demand for Federal Reserve liabilities. (See the box “The Role of Liabilities in Determining the Size of the Federal Reserve’s Balance Sheet” in Part 2.) Federal Reserve transparency and accountability. For central banks, transparency provides an essential basis for accountability. Transparency also enhances the effectiveness of monetary policy and a central bank’s efforts to promote financial stability. For these reasons, the Federal Reserve uses a wide variety of communications to explain its policymaking approach and decisions as clearly as possible. Through several new initiatives, including a review of its monetary policy framework that will include outreach to a broad range of stakeholders, the Federal Reserve seeks to enhance transparency and accountability regarding how it pursues its statutory responsibilities. (See the box “Federal Reserve Transparency: Rationale and New Initiatives” in Part 2.)