The Eurosystem’s often-misunderstood TARGET2 balances have again become a topic featured in op-eds and bank briefing documents. I’m posting this a bit late but here is a briefing paper I did on these balances that was submitted to the European Parliament in November 2017. For those interested in a longer explanation of how the mechanics of how these balances come about, my 2013 paper covers a lot of different issues.
Category Archives: Central Banks
ECB Decision Likely Means Greek Banks Stay Closed
Some comments on today’s ECB Governing Council decision to cap ELA for Greek banks.
The Grexit Mechanism: What It Means For The Future Of the Euro
A discussion of the mechanism that is potentially driving Greece out of the Eurozone and its implications for the future of the euro.
The Puny Fiscal Effects of European QE
Lots of people think the euro area’s central banks will be handing back all the interest payments they receive on their QE bonds, providing a nice boost to the taxpayer. They won’t. Grim details here.
How Does QE Work? A Picture Worth a Thousand Words
With QE purchases starting a few days ago, some thoughts on how QE works with a nice graph to explain.
Can QE Be Bad For Taxpayers?
Some new thoughts on the “can you make losses printing money” theme, this time with a Hans-Werner Sinn angle.
So What Did ECB Just Do To Greece?
The situation in Greece continues to tick over. An explanation of the ECB’s decision tonight to cut off various Greek assets from its eligible collateral list.
What’s Going On with Greece and the ECB?
It’s complicated. But it’s got nothing to do with technocratic ECB rules.
An ECB QEsplainer
My thoughts on the ECB’s QE announcement. Perhaps a bit long, perhaps a bit disorganised ….
The Myth of the Special German Saver
Everyone knows German savers are special, don’t they? Not so much it turns out. Read here.