TARGET balances: An anchor of stability

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: DIW Economic Bulletin ; ISSN: 2192-7219 ; Volume: 3 ; Year: 2013 ; Issue: 11/12 ; Pages: 3-11 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy ; Central Banks and Their Policies ; International Lending and Debt Problems ; Financial Crises ; International Financial Markets
• Subject: TARGET2 ; central bank liquidity ; euro area crisis ; capital flight

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fratzscher, Marcel ; König, Philipp ; Lambert, Claudia
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/88614
• Last update: 10.03.2025, 11:41 AM CET