EMU Target Practice

The inside track on how the German Bundesbank is effectively financing the PIIGS. Eurozone settlement mechanisms have never been more fascinating…
How German taxpayers prop up Italy, BBC News, 8 Dec 2011.
How Germany is paying for the Eurozone crisis anyway, Financial Times, 6 Dec 2011.
Here’s why the Eurozone solution is fraught with uncertainty, Wall Street cheat sheet, 30 Nov 2011.
Some euro banknotes are more equal than others, Financial Times, 14 Nov 2011.
ECB website material on TARGET2
also see Box 4 on Target2 balances in the Economic and Monetary Developments section of the ECB Monthly Bulletin, Oct 2011

For analyses of how TARGET2 works and discussions of whether it actually is responsible for a secret bailout of Europe’s periphery see
TARGET2 and Central Bank Balance Sheets, Karl Whelan, University College Dublin, 21 Nov 2012
The TARGET2 Settlement System in the Eurozone, FRB Atlanta, Apr 2012
Interpreting TARGET2 balances, BIS Working Paper, Dec 2012
What is the origin and meaning of the Target2 balances? Deutsche Bundesbank, Mar 2012