EMU and the Greek crisis: The political-economy perspective

Katsimi, Margarita; Moutos, Thomas

doi:10.1016/j.ejpoleco.2010.08.002

Cited by 121 publications

(50 citation statements)

References 16 publications

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“…Milesi-Ferretti (2012, 2010) show that abnormally large current account deficits, such as those fuelled by excessive domestic credit expansion, were associated with sharp current account reversals during the global financial crisis. The financial integration channel clearly intersected with the fiscal deficits channel in Greece, where the government grossly mismanaged the public finances and borrowed excessively on international debt markets (Featherstone, 2011;Katsimi and Moutos, 2010).…”

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Estimating the effect of the EMU on current account balances: A synthetic control approach

Hope

2016

European Journal of Political Economy

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The European sovereign debt crisis wrought major political and economic damage on the European Monetary Union (EMU). This led to a reassessment of the pre-crisis period of economic growth and stability in the EMU, shifting attention to the macroeconomic imbalances that emerged between member states, especially those in current account balances. This paper uses macroeconomic data on OECD economies and a new statistical approach for causal inference in observational studies-the synthetic control method-to estimate the effect of the EMU on the current account balances of individual member states. This 'counterfactuals' approach provides strong evidence that the introduction of the EMU was responsible for the divergence in current account balances among member states in the run-up to the euro crisis. The results suggest that the EMU effect operated through multiple channels and that fundamental changes to the institutional framework of the EMU may be required to safeguard the currency union against a reemergence of dangerous external imbalances in the future.

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confidence: 99%

Estimating the effect of the EMU on current account balances: A synthetic control approach

Hope

2016

European Journal of Political Economy

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“…7. Policy-makers should also address the issue of poor governance systems and inadequate disclosure policies that facilitate illegal practices such as pilferage of public funds, thus weakening the fundamentals (Katsimi andMoutos 2010, Featherstone 2011). These factors lead to a variation in depth, strength, and development of debt markets across countries, resulting in a less than expected level of integration.…”

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confidence: 99%

Time-Varying Bond Market Integration in EMU

Gupta

Sehgal

Deisting

2015

JEI

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We examine the level and progress of bond market integration amongst the eleven Economic and Monetary Union countries with active bond markets, over normal and crisis periods. The study covers data from January 2002 up to March 2014. We employ seven indicators for assessing integration, namely beta convergence, sigma convergence, variance ratio, Asymmetric Dynamic Conditional Correlation, dynamic co-integration, market synchronisation, and common factors approach. The results suggest that there is no heterogeneity in the integration process of large-sized economies and medium-sized economies, thereby restricting portfolio diversification potential. Further, bond market integration in the Economic and Monetary Union deteriorated during the crisis period, especially during the European debt crisis, with the economies of Greece, Ireland, Italy, Portugal, and Spain being the worst affected. We observe that bond markets take a lead in information linkages vis-à-vis stock markets, and hence should get precedence in policy intervention relating to market integration, development, and crisis management.

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“…Tworzyły ją indeksy rynków, które jako jedne z pierwszych zostały dotknięte europejskim kryzysem zadłużenia. Pierwsze jego symptomy pojawiły się w gospodarce greckiej już pod koniec 2009 roku, by następnie objąć rynki: Portugalii, Włoch czy Irlandii i w rezultacie, w roku 2010 już niemal cała Europa odczuła kolejny kryzys [Katsimi, Moutos, 2010;Moro, 2014].…”

Section: Struktura Hierarchiczna Rynków -Wyniki Badańunclassified

Wpływ kryzysu finansowego 2007-2009 na strukturę hierarchiczną europejskich rynków kapitałowych

Majewska

2017

Optimum

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NA STRUKTURĘ HIERARCHICZNĄ EUROPEJSKICH RYNKÓW KAPITAŁOWYCH StreszczenieCelem niniejszego opracowania jest analiza struktury hierarchicznej europejskich rynków kapitało-wych w okresach: przed globalnym kryzysem finansowym 2007-2009 oraz po jego zakończeniu. W badaniu wykorzystano tygodniowe logarytmiczne stopy zwrotu głównych indeksów 28 giełd europejskich, wśród których znalazły się zarówno rynki rozwinięte, jak i rozwijające się. Okres badawczy objął lata 2000-2016. Do zbadania struktury powiązań między rynkami wykorzystano metody aglomeracyjne, przede wszystkim metodę Warda. Przeprowadzona analiza pozwoliła stwierdzić istotne różnice w strukturze powiązań między rynkami w okresie przed kryzysem i po jego zakończeniu. Wskazała również grupy rynków szczególnie silnie oddziałujących na siebie. Słowa kluczowe: globalny kryzys finansowy, analiza skupień, dendrogram, metoda Warda IMPACT OF 2007-2009 FINANCIAL CRISIS ON HIERARCHICAL STRUCTURE OF EUROPEAN CAPITAL MARKETS SummaryThe purpose of this paper is to investigate the hierarchical structure of the European capital markets in the periods before and after the Global Financial Crisis of 2007-2009. The author uses weekly logarithmic stock market returns of the 28 main indexes of the European exchanges, both from the developed and developing markets, in the period 2000-2016. The examination is based on agglomerative clustering methods, primarily on the Ward's linkage method. The results show that the Global Financial Crisis has changed the hierarchy of the markets. They also indicate which groups of markets are most strongly interconnected.

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EMU and the Greek crisis: The political-economy perspective

Cited by 121 publications

References 16 publications

Estimating the effect of the EMU on current account balances: A synthetic control approach

Estimating the effect of the EMU on current account balances: A synthetic control approach

Time-Varying Bond Market Integration in EMU

Wpływ kryzysu finansowego 2007-2009 na strukturę hierarchiczną europejskich rynków kapitałowych

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