Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72217
Authors: 
Whelan, Karl
Year of Publication: 
2013
Series/Report no.: 
Working Paper Series, UCD Centre for Economic Research 12/29
Abstract: 
The euro area'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 euro area monetary policy operated differently, examines the risks to Germany and considers proposals for settlement of these balances.
Document Type: 
Working Paper

Files in This Item:
File
Size
603.34 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.