JP Morgan Asset Management case study

Missing the target: Eurozone bailouts and TARGET2

Published by : JP Morgan Asset Management

The dramatic depth, dispersion, and duration of the global financial crisis that began in 2007 has led to unprecedented actions by central banks. They have tried to both contain the fallout from the crisis and to speed the economic recovery. The most unusual of the new measures has been quantitative easing in its various guises - fundamentally the purchase of publicly traded government and corporate securities by central banks - as well as massive injections of liquidity into the financial system. These measures have led to substantial increases in the balance sheets of the central banks.


In this paper, Dan Morris sheds some light on the debate over TARGET2 balances and eurozone bailouts.


 

Published:01 March 2012

Business Area: Europe

Type: Portable Document Format (.pdf)

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