Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203484
Authors: 
Klose, Jens
Year of Publication: 
2019
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2019: 30 Jahre Mauerfall - Demokratie und Marktwirtschaft - Session: International Finance No. B14-V3
Abstract: 
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.
Subjects: 
Redenomination Risk
Euro Area
Exit
JEL: 
E43
F45
G01
Document Type: 
Conference Paper

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