21 December 2011
On 8 Dec, the European Central Bank announced that it will conduct two Longer-Term Refinancing Operations (LTRO) with a maturity of 36 months – one each in December and February. According to the initial press release, The operations will be conducted as fixed rate tender procedures with full allotment. The rate in these operations will [...]
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18 December 2011
In recent posts on the Eurosystem, I looked at how it operates and in The Eurosystem: Part 2 highlighted how capital flow across borders within the Euro Area has led to a large accumulation of TARGET2 balances by some NCBs such as the Deutsche Bundesbank. Bloomberg Businessweek had an article Germany’s Hidden Risk recently on this: [...]
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