The European Sovereign Debt Crisis and Its Impact on Bond and Stock Markets: Market Considers It a Long Term Crisis

2013 ◽  
Author(s):  
Sophia Koch ◽  
Elisabeth BBumler
Keyword(s):  
Stock Markets ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
European Sovereign Debt Crisis

scholarly journals The Comovement of Exchange Rates and Stock Markets in Central and Eastern Europe

2019 ◽  
Vol 11 (14) ◽  
pp. 3985 ◽  
Author(s):  
Simona Moagăr-Poladian ◽  
Dorina Clichici ◽  
Cristian-Valeriu Stanciu
Keyword(s):  
Exchange Rates ◽  
Stock Markets ◽  
Sovereign Debt ◽  
Financial Integration ◽  
Debt Crisis ◽  
Eastern European ◽  
Sovereign Debt Crisis ◽  
European Sovereign Debt Crisis ◽  
Exchange Markets ◽  
Eastern European Countries

This paper analyses the link between exchange rates and stock markets in four Central and Eastern European countries. We simultaneously explore the comovements of foreign exchange markets and stock markets at the cross-country level and the link between these two markets within each country while employing a Dynamic Conditional Correlation Mixed Data Sampling (DCC-MIDAS) model. Such an approach to financial markets conveys a much more visible picture of the existing patterns of financial integration between these markets that would otherwise be neglected. The estimates reveal significant differences between the patterns of correlation in our sample countries. First, the paper finds a quite low degree of convergence between foreign exchange markets, with rising correlations during some of the crisis episodes. Second, both the 2004 European Union enlargement and the European sovereign debt crisis underpin the stock market comovements in the Central and Eastern European countries. Third, the correlations between the exchange rate returns and stock markets rise mostly during the European sovereign debt crisis and to a lesser extent during the global financial crisis, revealing signs of contagion and lower portfolio diversification opportunities. These results are of utmost relevance for the process of financial integration and they also have important implications for policy makers, risk management, and investors.

scholarly journals Die Herausbildung einer neuen Economic Governance als Strategie zur autoritären Krisenbearbeitung in Europa – gesellschaftliche Akteure und ihre Strategien

2012 ◽  
Vol 42 (168) ◽  
Author(s):  
Martin Konecny
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Economic Governance ◽  
Political Strategy ◽  
Social Forces ◽  
Sovereign Debt Crisis ◽  
European Sovereign Debt Crisis ◽  
Fiscal Compact ◽  
European Regulations

In the context of the economic crisis and the European sovereign debt crisis in particular the dominant social forces and state apparatuses are pushing for a long term solution. Here I argue that relevant European class forces as well as national class factions established the so called Six Pack as a political strategy that aims to radicalize neoliberal policies via European regulations. While in the member states democratic structures are being minimized, more decisions are made on the European level, through which the executive apparatus, especially the European Commission, gains more influence. I analyze the way in which the dominant social forces shaped the Six Pack and examine similarities but also differences to the European Fiscal Compact. Finally I look at the meaning of these current reforms for a left strategy of rupture in Europe.

scholarly journals The Impact of the Introduction of Uniform European Collective Action Clauses on European Government Bonds as a Regulatory Result of the European Sovereign Debt Crisis

2020 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Nicoletta Layher ◽  
Eyden Samunderu
Keyword(s):  
European Union ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Bond Yields ◽  
Member States ◽  
Sovereign Bond ◽  
European Sovereign Debt Crisis ◽  
Collective Action Clauses

This paper conducts an empirical study on the inclusion of uniform European Collective Action Clauses (CACs) in sovereign bond contracts issued from member states of the European Union, introduced as a regulatory result of the European sovereign debt crisis. The study focuses on the reaction of sovereign bond yields from European Union member states with the inclusion of the new regulation in the European Union. A two-stage least squares regression analysis is adopted in order to determine the extent of impact effects of CACs on member states sovereign bond yields. Evidence is found that CACs in the European Union are priced on financial markets and that sovereign bond yields do respond to the inclusion of uniform CACs in the European Union.

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