TARGET2: The Creeping Risk of a Financial Nuclear Bomb

Dimitris N. Chorafas

Chapter 7 in Breaking Up the Euro, 2013, pp 145-169 from Palgrave Macmillan

Abstract: Abstract In his conference of October 4, 2012, Mario Draghi presented no new details in regard to the Outright Monetary Transactions (OMT) program, announced nearly a month earlier (chapter 6), though in a vague way he credited it with successes. He said that since the new ECB policy became public, the situation had already “relaxed a little,” the yield-and-risk increases for member countries’ sovereign bonds had ebbed, and capital flows within Euroland’s important TARGET2 balance sheet—in which national reserve banks write their assets, liabilities, and obligations toward each other and the ECB—goes by majority “in the right direction.”

Keywords: Monetary Policy; Central Bank; Current Account; Fiscal Policy; Public Debt (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-33229-5_7

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DOI: 10.1057/9781137332295_7

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