Fiscal Transfers by the ECB Within Euroland

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Fiscal Transfers by the ECB Within Euroland

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Monetary and fiscal policy are strictly related. But within the euro area monetarypolicy has unexpectedly led to huge and surreptitious fiscal trasfers via Target 2 and the commercial bank reserves.

Professor Hanno Lusting from Stanford University with a team of economists has highlighted and calculated the magnitude of these transfers. In this episode we discuss with him the economic and political implications.

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