Geopolitical risk and sovereign stress in the Euro Area

Francesco Frangiamore and Jamel Saadaoui

MPRA Paper from University Library of Munich, Germany

Abstract: Using local projections, this paper documents that neither global geopolitical risk (GPR) shocks nor GPR shocks originating in smaller euro area countries have a significant impact on Euro Area sovereign stress, whereas GPR shocks originating in Germany generate sizable effects, against the backdrop of the recent surge in geopolitical risk following the Russian invasion of Ukraine.

Keywords: Geopolitical Risk; Sovereign Stress; Local Projections. (search for similar items in EconPapers)
JEL-codes: E44 F51 G01 (search for similar items in EconPapers)
Date: 2026-01-26
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:127823

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