Published on Tuesday, January 31, 2017 | Updated on Tuesday, January 31, 2017

Target2 imbalances are rising, should we worry?

Summary

Target2 imbalances are reaching 2012 levels, linked to the ECB APP and not to the stress in financial markets. However, this imbalance poses some questions on how the APP is working and on EZ fragmentation.

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Authors

Sonsoles Castillo BBVA Research - Chief Economist for Financial and Economic Analysis
Cristina Varela BBVA Research - Principal Economist

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Report (PDF)

target2_20170130vf

English - January 31, 2017

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