Target Loans, Current Account Balances and Capital Flows: The ECB's Rescue Facility

Hans-Werner Sinn, Timo Wollmershaeuser

NBER Working Paper No. 17626
Issued in November 2011

---- Acknowledgements -----

We thank Jürgen Gaulke, Marga Jennewein, Michael Kleemann, Paul Kremmel, Wolfgang Meister, Beatrice Scheubel, Heidi Sherman and Christoph Zeiner for technical support, and in particular Julio Saavedra. We also thank Mario Draghi, Otmar Issing, Georg Milbradt, Helmut Schlesinger, Christian Thimann, Gertrude Tumpel-Gugerell, Jean-Claude Trichet and Martin Wolf for in-depth conversations, without implying in any manner whatsoever that they adhere to our arguments. The train of arguments and the most essential charts have already been presented by H.-W. Sinn at the following events: internal seminar, Banca d’Italia, 22 April 2011; public lecture, Humboldt University Berlin, 9 May 2011; Introduction, Munich Economic Summit, 19 Mai 2011. We thank Michael Burda for serving as the formal discussant for the Berlin lecture. This is an updated version of the one presented and discussed at a press briefing on 22 June 2011 in Frankfurt. We thank the participants for their valuable comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. An online video of the Berlin presentation is available at: http://www.cesifo-group.de/berlinvideo

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