Will TARGET2-balances be reduced again after an end of the crisis?

Christian Fahrholz; Andreas Freytag

This article deals with the macro-economics of the Trans-European Automated Re- al-time Gross Settlement Express Transfer System (TARGET2). Originally, the TARGET2 was in-tended to solely function as a monetary arrangement for liquidity issues. It is shown that the TARGET2 contributes to a substantial misallocation of real resources within the Eurozone (EZ). The discussion highlights that there are no tendencies for rebalancing TARGET2-claims and liabilities, but rather a dynamic towards infinite and prolonged TARGET2-imbalances in the form of hysteresis.

MoreLess

Year of publication:	2011
Authors:	Fahrholz, Christian ; Freytag, Andreas
Publisher:	Jena : Univ.
Subject:	TARGET2 \| Eurosystem \| ESCB \| balance-of-payments \| Internationaler Zahlungsverkehr \| International payments \| Clearing \| Financial clearing \| Hysterese \| Hysteresis \| Eurozone \| Euro area

Extent:	Online-Ressource (PDF-Datei: 20 S., 0,66 MB) graph. Darst.
Series:	Global financial markets : working papers. - Jena : Univ., ZDB-ID 2491778-3. - Vol. 30
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	TARGET2 = Trans-European Automated Real-time Gross Settlement Express Transfer System Systemvoraussetzung: Acrobat Reader
Other identifiers:	hdl:10419/94473 [Handle]
Classification:	E02 - Institutions and the Macroeconomy ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; E44 - Financial Markets and the Macroeconomy ; E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization ; H63 - Debt; Debt Management ; Finanzwissenschaft
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009569733