Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74795
Authors: 
Sauer, Beate
Sell, Friedrich L.
Year of Publication: 
2013
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge, Universität der Bundeswehr München, Fachgruppe für Volkswirtschaftslehre 2013,2
Abstract: 
The Target imbalances within the Eurozone can be interpreted as a sign of a missing balance of payments adjustment mechanism for the member countries. As the Eurozone lacks a fiscal union, in economic theory it is more an exchange rate union or a system of fixed exchange rates than a monetary union. In the latter, there would not be any national balances of payments, but only one for the whole Eurozone. This paper will show why the Target System is a crucial indicator for the Eurozone not being a monetary union, but an exchange rate union and why countries holding Target liabilities against the European System of Central Banks can be compared to a reserve currency country, e.g. like the US during the Bretton-Woods-System.
Subjects: 
Target Imbalances
Balance of Payments Crisis
Balance of Payments Adjustment Mechanism
Eurozone
Fixed Exchange Rates
Fiscal Union
JEL: 
E40
E41
E42
E50
E52
Document Type: 
Working Paper

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