The Link Between Monetary Policy and Fiscal Transfers in the Eurozone

This VoxEU.org article by Hans-Werner Sinn presents an interesting perspective on the role of the ECB throughout the crisis, and how fiscal transfers have in fact been taking place through the monetary channel:

Because the printing presses in the periphery are still running at full speed, the Bundesbank has had to turn its own presses into shredding machines in order to destroy the money that has flooded in from the South. Since September, the Bundesbank has given no net credit to the German banking system; it instead borrows from it. After deducting the deposit facility, the net refinancing of credit the Bundesbank gave to German banks is now negative.