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Nationale Geldschöpfung zersetzt den Euroraum


  • Stefan Kooths
  • Björn Roye


The Eurosystem has been operating in crisis mode for more than four years now. Massive quantitative and qualitative easing in its monetary policy stance are the visible marks of its response to the turbulence in the financial sector. This policy aims primarily at maintaining financial stability in the euro area by providing vast liquidity support to commercial banks that are operating in nationally segmented banking systems. The sovereign debt crises in some member countries further exacerbate the segmentation problem along country borders. As a side effect, cross-border capital flows are substituted by money market operations by the national central banks. The latter are engaging more and more often in substantial balance-of-payments financing, and financial risks are shifted from investors to European taxpayers via the Eurosystem. Symptomatically, this shows up in exploding TARGET2 positions in the national central banks’ balance sheets. The longer this process continues, the stronger the centrifugal forces become that ultimately might burst the single currency. A solution requires a euro area-wide regulatory approach for the financial sector. Next to a uniform scheme for banking regulation, supervision and resolution, we recommend the comprehensive introduction of contingent convertible bonds (CoCos) as a major refinancing source for the banking industry. As this proposal cannot be introduced overnight, national and European banking resolution funds are necessary in the short run. The latter do not rescue banks, but they kick in as soon as a bank’s equity is depleted in order to wind down failing banks in a systemically prudent way. Copyright ZBW and Springer-Verlag 2012

Suggested Citation

  • Stefan Kooths & Björn Roye, 2012. "Nationale Geldschöpfung zersetzt den Euroraum," Wirtschaftsdienst, Springer;German National Library of Economics, vol. 92(8), pages 520-526, August.
  • Handle: RePEc:spr:wirtsc:v:92:y:2012:i:8:p:520-526
    DOI: 10.1007/s10273-012-1414-z

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    References listed on IDEAS

    1. Bruno S. Frey, 2000. "Was Bewirkt die Volkswirtschaftslehre?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 1(1), pages 5-33, February.
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    Cited by:

    1. Boysen-Hogrefe, Jens & Gern, Klaus-Jürgen & Groll, Dominik & Jannsen, Nils & Kooths, Stefan & Plödt, Martin & Schwarzmüller, Tim & van Roye, Björn & Scheide, Joachim, 2014. "Finanz- und Wirtschaftspolitik bei einer anhaltenden monetären Expansion," Kieler Beiträge zur Wirtschaftspolitik 5, Kiel Institute for the World Economy (IfW).
    2. Dirk Meyer, 2016. "Euro-Geldschöpfung durch die Mitgliedstaaten: Gefahren aus nationalem Zusatzgeld," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(06), pages 30-40, March.

    More about this item


    E42; E51; E58; F32; F34;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems


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