Economics at your fingertips  

The resurgence of protectionism: potential implications for global financial stability

Allan Gloe Dizioli and Björn van Roye

Financial Stability Review, 2018, vol. 2

Abstract: The intensification of trade tensions this year has raised concerns about the potential adverse impact on global growth and asset prices. So far, the isolated effects of introducing tariffs on selected goods on asset prices have been adverse mainly for specific companies that rely heavily on international trade. At the same time, global financial markets have overall been fairly resilient to the announcements and implementation of tariff measures. This special feature finds that an escalation of trade tensions could trigger a global repricing in asset markets. For the euro area, asset prices would be strongly affected in the event of a full-blown global trade war, in which all countries impose tariffs on each other, while the impact of a regionally contained trade dispute escalation would be rather subdued. JEL Classification: E37, F13, F18, F47

Keywords: global asset prices; international financial spillovers; trade policy; uncertainty shocks (search for similar items in EconPapers)
Date: 2018-11
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... rart201811_2.en.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Financial Stability Review from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

Page updated 2019-12-22
Handle: RePEc:ecb:fsrart:2018:0002:2