Time series analysis of the Deutsche Bundesbank’s Target claims and possible connections to the ECB’s expansionary monetary policy

Nicole Storp and Tobias Kordsmeyer (University of Göttingen) are investigating the dynamic development of the Deutsche Bundesbank’s Target balances. In the period from January 1, 1999 to December 31, 2018, the authors observed three sharp increases in the Deutsche Bundesbank’s Target claims. Their analysis shows that turbulence on the European interbank market probably caused the first spike, while the European Central Bank’s expansionary monetary policy contributed to the two subsequent spikes.