Article ID Journal Published Year Pages File Type
5100360 Journal of Empirical Finance 2016 6 Pages PDF
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.
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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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The effect of political communication on European financial markets during the sovereign debt crisis
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