Nature of TARGET2 Imbalances

Szécsényi, Péter (2015) Nature of TARGET2 Imbalances. Public Finance Quarterly = Pénzügyi Szemle, 60 (3). pp. 342-356.

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There is no consensus among economists regarding the nature of TARGET2 assets and liabilities recorded on the balance sheets of euro area national central banks, the exact reasons for their build-up in recent years and the possible ways of their mana-gement. The paper points out that TARGET2 balances are shaped concurrently by endogenous and exogenous factors. The common banking supervision system and the quantitative easing programme of the ECB may ease the imbalances, reduce the dynamics of TARGET2 balances, and alleviate currently perceived risks.

Item Type:Article
Uncontrolled Keywords:interbank settlements; euro area; imbalance; monetary policy; TARGET2
JEL classification:E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
E58 - Central Banks and Their Policies
F33 - International Monetary Arrangements and Institutions
ID Code:8836
Deposited By: Alexa Horváth
Deposited On:18 Sep 2023 08:07
Last Modified:18 Sep 2023 08:07

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