Target-balances: The Greek examples

Arbeitspapier

This article looks at the evolution of the Target balance of the Greek central bank. It is shown that in the first 18 months 'after Lehman', lending policy has been relatively lax, contributing to the increase of Target deficits. However, from spring 2010 onwards, there has been a slowburning bank run. Greek depositors converted their deposits into cash or transferred them to core countries such as Germany. Without the help of the Eurosystem, such a massive withdrawal would have led to the immediate failure of Greek banks and economic standstill in Greece. In this situation, the Eurosystem has performed its role as lender of last resort, as it should.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ROME Discussion Paper Series ; No. 13-15

Classification and Topics

• Classification: Wirtschaft ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Central Banks and Their Policies ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; Current Account Adjustment; Short-term Capital Movements ; International Lending and Debt Problems
• Subject: Currency union ; Balance of payments ; Bailout ; Eurosystem ; Target

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Krueger, Malte
• Event: Veröffentlichung
• (who): Research On Money in the Economy (ROME)
• (where): s.l.
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/98641
• Last update: 10.03.2025, 11:44 AM CET