The Effect of Political Communication on European Financial Markets during the Sovereign Debt Crisis

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 European stock and bond markets as well as the EUR-USD exchange rate. Communication with respect to Italy induces the strongest market reactions. Financial markets consider the German bondmarket a safe haven.

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Year of publication:	2012
Authors:	Conrad, Christian ; Zumbach, Klaus Ulrich
Publisher:	Heidelberg : University of Heidelberg, Department of Economics

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Series:	Discussion Paper Series ; 536
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	10.11588/heidok.00014220 [DOI] 733553923 [GVK] hdl:10419/127350 [Handle] RePEc:awi:wpaper:0536 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10011422242