TY  - JOUR
AU  - Garber,Peter M.
TI  - Notes on the Role of TARGET in a Stage III Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6619
PY  - 1998
Y2  - June 1998
UR  - http://www.nber.org/papers/w6619
L1  - http://www.nber.org/papers/w6619.pdf
N1  - Author contact info:
Peter M. Garber
Deutsche Bank
60 Wall Street
New York, NY 10005
Tel: 212/250-5466
Fax: 212/250-2628
E-Mail: peter.garber@db.com
AB  - When Stage III of EMU begins on January 1, 1999, member countries will irrevocably lock exchange rates, and interbank payments in euros will commence.  Will the ensuing respite from Stage II instabilities be permanent or only the eye of the storm? Can Stage III itself be subject to an attack that forces a realignment of the of the system? The key question for this paper is how the infrastructural arrangements designed to underpin the monetary union will emerge to determine capital flow dynamics in a crisis and accentuate potential cross-border flows.  The answer lies in the details of the TARGET payment system, which can provide the inter-central bank credit necessary to fund an attack.
ER  -