The effect of political communication on European financial markets during the sovereign debt crisis

Christian Conrad and Klaus Ulrich Zumbach

Journal of Empirical Finance, 2016, vol. 39, issue PB, 209-214

Abstract: We quantify all statements by major European politicians reported by Reuters during the August 2011 to December 2011 period and show that political communication significantly affects the EUR–USD exchange rate as well as European stock and bond markets. Communication with respect to Italy induces the strongest market reactions. Financial markets consider the German bond market a safe haven.

Keywords: Political statements; High-frequency response; Austerity measures; Joint liability (search for similar items in EconPapers)
JEL-codes: C20 E43 E62 G01 G12 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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Related works:
Working Paper: The Effect of Political Communication on European Financial Markets during the Sovereign Debt Crisis (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:39:y:2016:i:pb:p:209-214

DOI: 10.1016/j.jempfin.2016.01.018

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