Abstract
Financial markets reacted with a vengeance to the COVID-19 pandemic. We argue that while the spread of the pandemic is statistically significant in explaining changes to bond spreads, it has little additional explanatory power over variables that capture financial stress. Financial markets reacted as in any international financial crisis by penalizing emerging economies exposing existing vulnerabilities. This finding highlights the need for credible, but flexible, sovereign currencies and the need to build up liquidity reserves.
| Original language | English |
|---|---|
| Article number | 20200013 |
| Journal | Economists' Voice |
| Volume | 17 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1 Dec 2020 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2020 Walter de Gruyter GmbH, Berlin/Boston 2020.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 3 Good Health and Well-being -
SDG 10 Reduced Inequalities -
SDG 17 Partnerships for the Goals
Keywords
- COVID19
- bond spreads
- emerging markets
- financial markets
- monetary policy
Fingerprint
Dive into the research topics of 'The COVID-19 and bond spreads'. Together they form a unique fingerprint.Cite this
- APA
- Author
- BIBTEX
- Harvard
- Standard
- RIS
- Vancouver