Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94473
Authors: 
Fahrholz, Christian
Freytag, Andreas
Year of Publication: 
2012
Series/Report no.: 
Working Papers on Global Financial Markets 30
Abstract: 
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.
Subjects: 
TARGET2
Eurosystem
ESCB
balance-of-payments
JEL: 
E02
E42
E44
E63
H63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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