Nationale Geldschöpfung zersetzt den Euroraum
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
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 92 (2012)
Issue (Month): 8 (August)
|Contact details of provider:|| Web page: http://www.springer.com|
Postal:Düsternbrooker Weg 120, 24105 Kiel / Neuer Jungfernstieg 21, 20354 Hamburg
Phone: +49 431 8814-1
Fax: +49 431 8814-520
Web page: http://www.zbw.eu/de/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/policy/journal/10273|
When requesting a correction, please mention this item's handle: RePEc:spr:wirtsc:v:92:y:2012:i:8:p:520-526. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.