Do Financial Markets Respond to Populist Rhetoric?

Author:

ÇAKMAKLI CEM12,DEMİRALP SELVA2,GÜNEŞ GÖKHAN ŞAHİN3ORCID

Affiliation:

1. Department of Economics Durham University Durham DH1 3LB United Kingdom

2. Department of Economics Koç University İstanbul 34450 Turkey

3. Betam Bahçeşehir University İstanbul 34353 Turkey

Abstract

AbstractWith the global rise in populism over the last decade, there has been an increase in political commentaries (PC) by leaders that criticize their central banks and argue for lower interest rates. We analyse the effects of PCs on exchange rates, bond yields, and the risk premium for six countries that are subject to political pressures. Utilizing a specification with time‐varying parameters, we show that PCs affect the level and the volatility of exchange rates, bond yields and the risk premium in Turkey. The response increases over time. In other countries, there is a significant impact on exchange rate volatility.

Publisher

Wiley

Subject

Statistics, Probability and Uncertainty,Economics and Econometrics,Social Sciences (miscellaneous),Statistics and Probability

Reference37 articles.

1. A Political Theory of Populism *

2. Do political commentaries command? The case of the Central Bank of Brazil

3. Modeling covariance matrices in terms of standard deviations and correlations, with application to shrinkage;Barnard J.;Statistica Sinica,2000

4. Business cycles and the exchange-rate regime

5. Çakmakli C.andDemiralp S.(2020).A Dynamic Evaluation of Central Bank Credibility Koc University‐TUSIAD Economic Research Forum Working Papers No. 2015.

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3