Factoids of the day: Target2 accounts of the German and Dutch central banks

from the German blog Querschusse, more information overthere.

Positive Target2 accounts show where the money needed to finance the monetary deficits of especially southern european countries, caused by the combination of current account deficits and at this moment especially capital flight, mainly came from. Before about 2009, current account deficits were financed by private capital inflows, the same money which in 2010, 2011 and 2012 returned to sender. Countries like Spain have at the moment negative accounts.

Graph 1: account of the Dutch central bank
Graph 2: account of the German central bank

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