THE REFINANCING OF BANKS DRIVES TARGET DEBT

• Published in: CESifo forum Vol. 13; p. 29
• Main Author: Neumann, Manfred J M
• Format: Journal Article
• Language: English
• Published: München Institut für Wirtschaftsforschung (Ifo) 01.01.2012
• Subjects: Bailouts; Balance of payments; Bank reserves; Banking industry; Central banks; Commercial banks; Debt financing; Economic theory; Exports; Floating exchange rates; Payment systems; Portfolio investments; Refinancing; Europe

The European Central Bank (ECB) annually reports at length about how wonderfully fast and smoothly its real-time payment system TARGET2 (Trans-European Automated Real-time Gross settlement Express Transfer system) functions (European Central Bank 2010). The ECB does not report, however, that within...