tag:blogger.com,1999:blog-2620779587099970327.post5046504617764274491..comments2018-02-20T06:27:03.573+01:00Comments on Money matters? Perspectives on Monetary Policy: Target balances and the risk of another "Reparations" problemAnonymoushttp://www.blogger.com/profile/04958418278142257524noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2620779587099970327.post-77369053584957197912013-07-30T17:13:39.311+02:002013-07-30T17:13:39.311+02:00"4. If a limit, explicit or implicit, was est..."4. If a limit, explicit or implicit, was established on Target balances and thus market participants would no longer be assured that, at any point in time, the Eurosystem would make good the liabilities of all its members, inevitably runs on central banks would follow, threatening the existence of the euro."<br /><br />Yes, I totally agree with this post, especially the point you make above. I wrote something <a href="http://jpkoning.blogspot.ca/2012/11/without-proper-balancing-forces-hans.html" rel="nofollow">here</a> that addresses the bank run problem that will inevitably emerge should Target2 imbalances be capped.<br /><br />Welcome to the econblogosphere.JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.com