EU Default Archive

the euro zone in transition

As previously discussed since inception, operationally the euro zone, much like every other nation with its own currency, will, one way or another, wind up with the ECB, the issuer of the currency, ‘funding’ fiscal deficits sufficient to meet any net savings desires in that currency, as well as funding the banking ...Read More

more on ECB funding dependence in the eurozone

Yet another substantiation of just how much the entire system is (necessarily) dependent on ECB funding/backstopping. The ECB’s Secret Bailout Strategy By: Hans-Werner Sinn Excerpt: The amount of the ECB’s “replacement lending” is shown by the so-called Target2 account, which measures the deficit or surplus of a country’s financial transactions with other ...Read More