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Real Effects of Sovereign Bond Market Spillovers in the Euro Area
| Content Provider | Scilit |
|---|---|
| Author | Gadatsch, Niklas |
| Copyright Year | 2016 |
| Description | Journal: SSRN Electronic Journal This paper develops a small open economy model to investigate the impact of rising sovereign bond market spreads on the real economy. One key element of the model is a “sovereign risk channel” through which tensions in the sovereign bond market tend to spill over into private credit markets. The model is estimated with Bayesian methods and data for “high-spread” countries in the euro area. It turns out that spread shocks during the Euro crisis had a negative effect on real GDP growth in these countries, up to 0.8 percentage points (PP) Portugal and Ireland, 0.3 PP in Italy and 0.2 PP in Spain. |
| Related Links | https://www.econstor.eu/bitstream/10419/110188/1/823654095.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=2817400 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.2817400 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2016-04-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal History and Philosophy of Science Bond Market Sovereign Bond Real Effects Euro Area |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |