TARGET2 and central bank balance sheets

TARGET2 and central bank balance sheets

The eurozone's TARGET2 payments system has featured heavily in academic and popular discussions of the euro crisis. Some of this commentary has described the system as being responsible for a 'secret bailout' of Europe's periphery. Another common theme has been that the system ha...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:Economic policy 2014-01, Vol.29 (77), p.79-137
Hauptverfasser: Whelan, Karl, Westermann, Frank, Ilzetzki, Ethan
Format: Artikel
Sprache:eng
Schlagworte:
Bailouts
Balance of payments
Balance sheets
Bank assets
Bank liabilities
Central bank balance sheets
Central banks
Credit
Credit risk
Discussion groups
Economic crisis
Economic policy
Economic theory
Euro
Euro Zone
Eurocurrency market
Europe
European Central Bank
European Union
Eurosystem
Eurozone
Financial liabilities
Germany
Monetary policy
National central banks
Payment
Studies
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:The eurozone's TARGET2 payments system has featured heavily in academic and popular discussions of the euro crisis. Some of this commentary has described the system as being responsible for a 'secret bailout' of Europe's periphery. Another common theme has been that the system has built up large credit risks for Germany should the euro break up. This paper discusses the TARGET2 system, focusing in particular on how it impacts the balance sheets of the central banks that participate in the system. It discusses the factors driving TARGET2 balances, considers some counterfactual cases in which eurozone monetary policy might have operated differently, examines the risks to Germany and considers proposals for settlement of these balances.
ISSN:0266-4658
1468-0327
DOI:10.1111/1468-0327.12025