The implications of intra-euro area imbalances in credit flows

CEPR Policy Insight No 57

Willem H. Buiter, Juergen Michels, Ebrahim Rahbari

The Eurozone money transfer system, TARGET2, has huge imbalances whose meaning is subject to much debate. This Policy Insight by Citigroup Chief Economist Willem Buiter and co-authors argues that the imbalances show some banks canít fund themselves without public support.