In this guest post, Marcello Minenna, the head of Quantitative Analysis and Financial Innovation at Consob, the Italian securities regulator, argues that reforms to the European Stability Mechanism can pave the way for Eurobonds. The views expressed here are his personal opinions and do not necessarily reflect the views of Consob.
Target2 balances reflect euro area’s potential to be better than traditional exchange rate peg regime
Think of it within the context of the balance of payments as foreign exchange reserves that can never be depleted.
New working paper adds details about offshore wealth holdings, though significant info gaps are still left to be filled.