Following Marshall Auerback’s guest post on the problem with Target2, and how it can potentially lead the German Constitutional Court to throw a spanner in the works of the euro system, Felix Salmon published an interesting article arguing that all this fuss about Target2 is the result of a misunderstanding of what Central Banks do – and of the profound difference between a liability of a Central Bank and that of a private bank. Felix’s point is well taken. But Marshall Auerback is not unaware of these important differences. In this post, he replies to Felix.Read it at Yanis Varoufakis
Is the ECB’s Target2 critical for the euro’s future? A debate between Felix Salmon and Marshall Auerback
by Yanis Varoufakis
Ramanan points out in the comments that Felix Salmon has responded to Marshall.
Read it at Reuters | Opinion
Don’t fear Target2. Fear its opponents.
by Felix Salmon