Measuring Redenomination Risks in the Euro Area - New Evidence from Survey Data

Konferenzbeitrag

This article introduces a new indicator to measure redenomination risks in Euro area countries. The measure is based on survey data. The influence of this indicator in determining sovereign bond yield spreads is tested using an ARDL-approach. The results for ten EMU countries in the period June 2012 to May 2019 show that the risk of a depreciation is almost abandoned for most Euro area countries, i.e. the former crisis countries Ireland and Portugal. If anything an appreciation may occur for some countries once they leave the EMU. The only countries facing depreciation problems once leaving the monetary union are Italy and to some extent Spain.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2019: 30 Jahre Mauerfall - Demokratie und Marktwirtschaft - Session: International Finance ; No. B14-V3

Classification and Topics

• Classification: Wirtschaft ; Interest Rates: Determination, Term Structure, and Effects ; Macroeconomic Issues of Monetary Unions ; Financial Crises
• Subject: Redenomination Risk ; Euro Area ; Exit

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Klose, Jens
• Event: Veröffentlichung
• (who): ZBW - Leibniz-Informationszentrum Wirtschaft
• (where): Kiel, Hamburg
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/203484
• Last update: 10.03.2025, 11:45 AM CET