The implications of TARGET2 in the European balance of payments crisis and beyond

Artikel

The paper provides an account of the meaning and implications of TARGET2 in the eurozone (EZ) balance of payments crisis. In this context, it discusses Hans-Werner Sinn's thesis about a stealth bail-out of the EZ periphery by the ECB from a heterodox perspective. Financial liberalisation, a relatively loose monetary policy and the provisional fading of devaluation risks generated ephemeral growth in some peripheral EZ countries sustained by capital flows from core countries. This has been followed by real exchange rate revaluation and deterioration of foreign accounts. As a result, external financing flows dried up and the previous stock of loans began to be repatriated. TARGET2 has played a fundamental role in avoiding a precipitous crisis. This distinguishes the European crisis from more traditional balance of payments crises. However, the presence of TARGET2 does not offset the absence of the financial crisis prevention and resolution mechanisms that are characteristic of fully fledged political and currency unions.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: European Journal of Economics and Economic Policies: Intervention (EJEEP) ; ISSN: 2052-7772 ; Volume: 10 ; Year: 2013 ; Issue: 3 ; Pages: 359-382

Klassifikation und Themen

• Klassifikation: Wirtschaft ; General Aggregative Models: Marxian; Sraffian; Kaleckian ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Central Banks and Their Policies ; Current Account Adjustment; Short-term Capital Movements ; International Monetary Arrangements and Institutions ; International Lending and Debt Problems ; Financial Aspects of Economic Integration ; Economic History: Financial Markets and Institutions: Europe: 1913-
• Thema: European Monetary Union ; financial crisis ; Germany ; neo-mercantilism ; balance of payment ; capital flows ; sudden stops ; TARGET2 ; OMT

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Cesaratto, Sergio
• Ereignis: Veröffentlichung
• (wer): Edward Elgar Publishing
• (wo): Cheltenham
• (wann): 2013

Weitere Informationen

• DOI: doi:10.4337/ejeep.2013.03.09
• Handle: http://hdl.handle.net/10419/277283
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ