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Euro-Dependence—A Peripheral Look beyond the Monetary Union: A Proposal of Reform of the TARGET2

Author

Listed:
  • Juan Barredo-Zuriarrain
  • Ricardo Molero-Simarro
  • Alejandro Quesada-Solana

Abstract

This paper seeks to present a proposal of reform of the TARGET2 (Trans-European Automated Real-Time Gross Settlement Express Transfer) system aimed to correct intra-European Union (EU) financial, trade, and productive imbalances. For this purpose, the proposal relies on the application of the Keynes Plan’s principles to a regional integration process. Previously, the origins of the EU imbalances are traced to the shortcomings of the European monetary integration. Finally, the reforms needed to make the TARGET2 a rebalancing system are discussed in depth. JEL Classification: F32, F33, F36

Suggested Citation

  • Juan Barredo-Zuriarrain & Ricardo Molero-Simarro & Alejandro Quesada-Solana, 2017. "Euro-Dependence—A Peripheral Look beyond the Monetary Union: A Proposal of Reform of the TARGET2," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(3), pages 375-393, September.
    • Handle: RePEc:sae:reorpe:v:49:y:2017:i:3:p:375-393
    DOI: 10.1177/0486613417703958
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Sergio Rossi, 2019. "Rethinking the euro as a common currency for Europe: Keynes's plan revisited," Revista de Economía Crítica, Asociación de Economía Crítica, vol. 27, pages 86-99.
    2. Esteban Cruz-Hidalgo & Dirk H. Ehnts & Pavlina R. Tcherneva, 2019. "Completing the euro: The euro treasury and the job guarantee," Revista de Economía Crítica, Asociación de Economía Crítica, vol. 27, pages 100-111.

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    More about this item

    Keywords

    European Monetary Union; intra-EU imbalances; Keynes Plan; regional monetary systems; TARGET2 reform;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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