OMT and Target 2

The video discusses the connection between Target 2 imbalances and the ECB's outright monetary transactions, focusing on the roles of Spanish and German national central banks. It explains how these transactions affect the balance sheets and proposes a system open market account for Europe, which could involve multiple countries and offer secured credits instead of unsecured Target 2 credits.

What is the relationship between the target 2 imbalances and the proposed monetary transactions by Draghi?

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How does the Spanish bank utilize the deposits received from selling Spanish bills?

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What implications do outright monetary transactions have for the German National Central Bank?

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What are the ongoing discussions regarding economic conditions for Spain in relation to the target 2 balances?

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Discuss the potential outcomes of the proposed system open market account for Europe.

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