Money & Credit: Eurozone TARGET2

Yardeni Research, Inc.

October 1, 2021

Dr. Edward Yardeni 516-972-7683 [email protected]

Mali Quintana 480-664-1333 [email protected]

Please visit our sites at www.yardeni.com blog.yardeni.com

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Eurosystem TARGET2 Balances 1-3

October 1, 2021 / Money & Credit: Eurozone TARGET2 Yardeni Research, Inc. www.yardeni.com Eurosystem TARGET2 Balances Figure 1. 1400 1400 ECB OFFICIAL TARGET2* NET BALANCES 1200 (billion euros, nsa) 1200 Belgium (Aug=-26.2) 1000 Finland (Aug=82.9) 1000 France (Aug=26.8) 800 Germany (Aug=1037.3) 800 Greece (Aug=-93.0) Italy (Aug=-472.5) 600 Luxemborg (Aug=326.7) 600 Netherlands (Aug=-4.8) 400 Portugal (Aug=-80.0) D 400 Spain (Aug=-498.8) 200 200

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yardeni.com -600 -600 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union. TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer System) was replaced in November 2007 by TARGET2. D = On July 26, 2012, ECB President Mario Draghi pledged to do "whatever it takes" to defend the euro. Source: Haver Analytics.

Figure 2. 1800 1800 ECB EUROSYSTEM TARGET2* NET BALANCES (billion euros, nsa) 1500 1500 Germany (Aug=1037.3) Germany, Finland, 1200 Luxemborg & 1200 Netherlands (Aug=1442.1) 900 900

600 600

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-900 Rest of the -900 Euro Area** (Aug=-1073.4) yardeni.com -1200 -1200 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union. TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer System) was replaced in November 2007 by TARGET2. ** Belgium, France, Greece, Ireland, Italy, Portugal and Spain. Source: Haver Analytics.

Page 1 / October 1, 2021 / Money & Credit: Eurozone TARGET2 Yardeni Research, Inc. www.yardeni.com Eurosystem TARGET2 Balances Figure 3. 1700 1700 ECB EUROSYSTEM TARGET2* NET BALANCES (billion euros, nsa) 1400 1400 Germany (1037.3) Finland+Germany+Netherlands (Aug=1115.4) 1100 Italy+Spain (Aug=-971.3) 1100 PIIGS: Portugal+Italy+Ireland**+ 800 +Greece+Spain (Aug=-1074.0) 800

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yardeni.com -1300 -1300 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union. TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer System) was replaced in November 2007 by TARGET2. Source: Haver Analytics.

Figure 4. 1200 1200 ECB EUROSYSTEM TARGET2* NET BALANCES (yearly change, billion euros, nsa) 1000 1000 Germany (Aug=-19.0)

800 Finland+Germany+Netherlands (Aug=-74.1) 800 Italy+Spain (Aug=10.1) 600 PIIGS: Portugal+Italy+Ireland+Greece 600 +Spain (Aug=9.3)

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yardeni.com -800 -800 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

* TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union. TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer System) was replaced in November 2007 by TARGET2. Source: Haver Analytics.

Page 2 / October 1, 2021 / Money & Credit: Eurozone TARGET2 Yardeni Research, Inc. www.yardeni.com Eurosystem TARGET2 Balances Figure 5. 300 300 ECB OFFICIAL TARGET2* NET BALANCES 250 (billion euros, nsa) 250

200 200

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100 End of Period 100 (2nd Generation; May 2008-Present) (-373.4) 50 50

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-350 -350 yardeni.com Aug -400 -400 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

* TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union. TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer System) was replaced in November 2007 by TARGET2. Source: Haver Analytics.

Figure 6. 300 300 ECB OFFICIAL TARGET2* NET BALANCES 250 (billion euros, nsa) 250

200 200

150 150

100 100 Average (1st and 2nd Generation) (-350.9) 50 50

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-350 Aug -350 yardeni.com -400 -400 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

* TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union. TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer System) was replaced in November 2007 by TARGET2. Source: Haver Analytics.

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