What is Target 2?

Tim Bennett looks at a system at the heart of the European project – ‘Target 2’ – and explains how it works, why it’s in the news, and whether you should worry about it.

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  • Jim

    Very interesting.

    Does sound as if Germany is doing quite well in exports to other euro countries which does suggest that other euro countries should start manufacturing more and not depend on Germany so much.

    Er, you said “when I divorce my wife” you didn’t mean ‘if ‘ did you? Or did you let slip you had matrimonial problems.

  • Abdi

    interesting video to watch, thanks Tim

  • Tim Bennett

    Jim. Er yes I mean’t IF not WHEN…..:) And, incase she’s watching, it’s a hypothetical, highly unlikely event used purely for the purposes of illustration.

  • mcbonus

    That is a helpful exxplanation of something people keep trying to worry me with.Thanks!

  • Erkin Koray

    I don’t understand one aspect of your example: When the german manufacturer receives the euros of the irish farmer on his commerzbank account. Does this not reduce the claim of the bundesbank to the european central bank? or does the claim stay indefinitely? There must be a settelement moment or not? So the claim of 800 billion can’t be building up indefinitely?