Mutual Assistance between Federal Reserve Banks, 1913-1960 as Prolegomena to the TARGET2 Debate

Mehl, Arnaud; Eichengreen, Barry; Chițu, Livia; Richardson, Gary

doi:10.3386/w20267

Cited by 4 publications

(2 citation statements)

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“…27SeeEichengreen et al (2014).28 Interestingly, the introduction by the Federal Reserve of interest on excess reserves (IOER) in October 2008 has somewhat revived the economic case for ISA rebalancing as it guarantees a broad alignment of each FRB's assets with the reserves depository institutions hold at each FRB. From an income perspective, such alignment of (interest-bearing) assets and liabilities is important because the IOER implies that reserves held at an FRB are now generating interest expenses for this FRB.…”

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confidence: 99%

The Eurosystem's Asset Purchase Programme and Target Balances

et al. 2017

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mentioning

confidence: 99%

The Eurosystem's Asset Purchase Programme and Target Balances

et al. 2017

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“…Hence such settlements mainly reflect the FRS' adherence to the accounting standards (Wolman, 2010). The fact that the Federal Reserve used gold certificates for these virtual settlements was only a tribute to the past, when such certificates had indeed played the role of liquid reserves held by banks (Eichengreen, Mehl, Chitu & Richardson, 2014).…”

Section: The Target2 Imbalances As An Accounting Phenomenonmentioning

confidence: 99%

Lessons from TARGET2 Imbalances: the Case for the ECB Being a Lender of Last Resort

Chmielewski¹,

Sławiński²

2019

EBR

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During the global banking crisis of 2007-2009 and the Eurozone sovereign debt crisis of 2010-2012 the so called 'TARGET2 imbalances' attracted considerable attention. Some economists interpreted them as a symptom of the ECB's 'stealth bailout'. The aim of the paper is to highlight that contrary to such claim, the emergence of TARGET2 imbalances reflected the benefits of having a mutual central bank within a monetary union which facilitated cross-border funding in spite of the global financial turbulence. The ECB's liquidity loans to commercial banks in the Eurozone debtor countries shielded the Eurozone from a much deeper financial crisis than it actually occurred. The emergence of the TARGET 2 imbalances was actually only an accounting phenomenon resulting from the fact that these liquidity loans were technically extended by the debtor countries' national central banks which are de facto (from the monetary policy perspective) ECB's regional branches.

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Doctrinal Determinants, Domestic and International, of Federal Reserve Policy 1914–1933

Eichengreen

2016

The Federal Reserve's Role in the Global Economy

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This paper describes the doctrinal foundations of Federal Reserve policy from the establishment of the institution through the early 1930s, focusing on the role of international factors in those doctrines and conceptions. International considerations were at most part of the constellation of factors shaping the Federal Reserve's outlook and policies even in the high gold standard era that ended in 1933. However, neither was the influence of international factors absent, much less negligible. Nor were the Fed's policies without consequences for the rest of the world. Having described the doctrinal foundations of Federal Reserve policy, I analyze how the doctrines in question influenced the central bank's actions and shaped the impact of monetary policy on a number of key occasions, focusing in particular on episodes where the international economy and the rest of the world played an important role. JEL codes: E4, F5

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Mutual Assistance between Federal Reserve Banks, 1913-1960 as Prolegomena to the TARGET2 Debate

Abstract: Livia Chi

Cited by 4 publications

References 23 publications

The Eurosystem's Asset Purchase Programme and Target Balances

The Eurosystem's Asset Purchase Programme and Target Balances

Lessons from TARGET2 Imbalances: the Case for the ECB Being a Lender of Last Resort

Doctrinal Determinants, Domestic and International, of Federal Reserve Policy 1914–1933

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