External authors

Jasper Lukkezen

European macroeconomics

Visiting fellow CPB

Read article More on this topic

Blog Post

Should we worry about Target2 imbalances? Why Central Bank negative equity does and doesn’t matter

Over the past few months Germany has become the safe haven of Europe. Depositors fearing a euro break-up have moved their deposits away from the periphery, realizing effective insurance. As a consequence, peripheral banks’ funding has shifted from private to public sources (see e.g. Pisany-Ferry and Merler). The Target2 imbalances that capture this have risen to unprecedented levels.

By: Michiel Bijlsma and Jasper Lukkezen Topic: European Macroeconomics & Governance Date: September 4, 2012
Read article More on this topic

Blog Post

Why is there no TARGET2 debate in the US?

Both Target2 and ISA balance have risen considerably since the outbreak of the crisis. We address the differences and similarities between ISA and Target2 imbalances and argue that without a well-functioning interbank market only two options remain: mounting or discounting. Our previous blog post on Target 2 imbalances received a lot of attention and generated […]

By: Michiel Bijlsma and Jasper Lukkezen Topic: European Macroeconomics & Governance Date: April 3, 2012
Read article More on this topic

Blog Post

Target 2 of the ECB vs. Interdistrict Settlement Account of the Federal Reserve

The Target 2 discussion is still going strong in Europe especially after the president of the German Bundesbank has expressed his concern as regards the quality of the collateral held by the ECB and National Central Banks. Observers such as Hans-Werner Sinn have claimed that the US Federal Reserve had a fundamentally different (and presumably better and more stable) set up.  

By: Michiel Bijlsma and Jasper Lukkezen Topic: European Macroeconomics & Governance Date: March 6, 2012