at Google ScholarTitle data
Erler, Alexander ; Hohberger, Stefan:
The real costs and profits of TARGET 2 balances.
Bayreuth
,
2014
. - 27 S.
- (Wirtschaftswissenschaftliche Diskussionspapiere der Universität Bayreuth, Rechts- und Wirtschaftswissenschaftliche Fakultät
; 02-14
)
Abstract in another language
The paper assesses the real costs and profits of German claims on the Eurosystem through TARGET2. While Germany’s nominal profits from holding TARGET2 claims depend on the development of the nominal interest rate, the real profits are determined by the real interest rate as well as the real exchange rate. The paper finds that at the end of 2013 Germany faces current costs of around 15 billion euros in real terms. Calculating the costs and profits of every member country in the euro area reveals that the TARGET2 system mirrors an implicit distribution mechanism with a volume of about 30 billion euros. The results underline the aspect that even without an euro area break-up or exit of one member-country, holding TARGET2 claims can cause high economic costs in real terms.
Further data
| Item Type: | Working paper, discussion paper |
|---|---|
| Institutions of the University: | Faculties > Faculty of Law, Business and Economics > Department of Economics > Former Professors > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance Faculties > Faculty of Law, Business and Economics > Department of Economics > Former Professors |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 15 May 2015 09:22 |
| Last Modified: | 23 Jan 2025 13:43 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/13536 |