Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/88614 
Year of Publication: 
2013
Citation: 
[Journal:] DIW Economic Bulletin [ISSN:] 2192-7219 [Volume:] 3 [Issue:] 11/12 [Publisher:] Deutsches Institut für Wirtschaftsforschung (DIW) [Place:] Berlin [Year:] 2013 [Pages:] 3-11
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
The debate about TARGET2, the payment system of the European System of Central Banks (ESCB), has resulted in controversial discussions in Germany in recent years. The present study by DIW Berlin concludes that fears often expressed in this context of the risks to Germany are largely unfounded. Germany is - in contrast to what is often claimed - one the beneficiaries of the Target system. In particular, the fact that in the course of the crisis, financial risks could easily be reduced thanks to TARGET2 was beneficial for both the German government and private investors. Since the outbreak of the crisis, German investors pulled almost 400 billion euros from the crisis countries and they continue to hold around 740 billion in assets there.
Subjects: 
TARGET2
central bank liquidity
euro area crisis
capital flight
JEL: 
E44
E58
F34
G01
G15
Document Type: 
Article

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