IDEAS home Printed from https://ideas.repec.org/h/spr/fimchp/978-3-319-20991-3_6.html
   My bibliography  Save this book chapter

The European Crisis and the Accumulation of TARGET2 Imbalances

In: Modern Financial Crises

Author

Listed:
  • Beniamino Moro

    (University of Cagliari)

Abstract

In the context of the European crisis, TARGET2 payment system of the European Monetary Union (EMU) countries became crucial, reflecting funding stress in the banking systems of most crisis-hit countries. This chapter analyzes the role displayed by TARGET2 in the EMU, a monetary union of 19 sovereign states. Until now, the ECB has assumed a crucial role to overcome the European financial crisis. But, to promote a full economic recovery in Europe, a strong interconnection between single countries’ fiscal policies and the ECB’s autonomous monetary policy is necessary. In this regard, we conclude that, in the medium term, a successful crisis resolution requires more political integration of EMU countries, which should include a fiscal union and a banking union. However, in the short run, a prompt recovery is essential to get out of the trouble, and this requires that surplus countries (especially Germany) expand aggregate demand and let domestic wages and the ensuing internal inflation rate increase.

Suggested Citation

  • Beniamino Moro, 2016. "The European Crisis and the Accumulation of TARGET2 Imbalances," Financial and Monetary Policy Studies, in: Modern Financial Crises, edition 127, chapter 0, pages 107-133, Springer.
    • Handle: RePEc:spr:fimchp:978-3-319-20991-3_6
    DOI: 10.1007/978-3-319-20991-3_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fimchp:978-3-319-20991-3_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.