Fahrholz, Christian; Freytag, Andreas - In: Applied Economics Quarterly (formerly: Konjunkturpolitik) 57 (2011) 1, pp. 15-25
The TARGET2-system impedes economic recovery within the EMU. Hard budget constraints are a key to kick-start structural reforms in some EMU-member countries. However, the TARGET2-system is not only aggravating real misalignments but also softening budget constraints. The authors argue that the...
