FLEE - The Absurdity Known As 'TARGET2'
Editor's note: Originally published at tsi-blog.com on February 4, 2019
[This blog post is an excerpt from a commentary posted at TSI about three weeks ago.]
TARGET2 is the system set up in the eurozone to clear inter-bank payments. The Bundesbank (Germany's central bank) describes it as a payment system that enables the speedy and final settlement of national and cross-border payments. The problem is that often there is no "final settlement" under TARGET2. Instead, credits and debits can build up indefinitely.
To understand the issue, it first must be understood that although the 19