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Balance \nsheets can evolve due to conventional and unconventional \nmonetary practices, generally through foreign exchange \nreserve policies or by qualitative and quantitative easing. \nMonetary policy instruments are measured by different balance \nsheet ratios. Currency stability is captured by two methods, \none focuses on monthly number of extreme currency \nfluctuations through the contravention of normal distribution \nat tails, and another utilises conditional volatility. The \nsample contains seven European central banks between 2006 and \n2014: one manages a key currency, four has a safe haven \ncurrency while two of them are considered as an emerging \ncurrency. 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