Juan Barredo-Zuriarrain, Ricardo Molero-Simarro, and Alejandro Quesada-Solana

Abstract

This paper seeks to present a proposal of reform of the TARGET2 (Trans-European Automated Real-Time Gross Settlement Express Transfer) system aimed to correct intra-European Union (EU) financial, trade, and productive imbalances. For this purpose, the proposal relies on the application of the Keynes Plan’s principles to a regional integration process. Previously, the origins of the EU imbalances are traced to the shortcomings of the European monetary integration. Finally, the reforms needed to make the TARGET2 a rebalancing system are discussed in depth.

Keywords

European Monetary Union, intra-EU imbalances, Keynes Plan, regional monetary systems, TARGET2 reform

From: Review of Radical Political Economics 2017 49 (3)

Editor: Wang Yi