Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/220005
Authors: 
Hanisch, Max
Year of Publication: 
2020
Citation: 
[Journal:] DIW Weekly Report [ISSN:] 2568-7697 [Volume:] 10 [Year:] 2020 [Issue:] 6/7 [Pages:] 53-58
Abstract: 
Over the past years, there has been an increase in global geopolitical risk, the most recent example being the intensifying conflict between the USA and Iran. Such geopolitical risks also affect the German economy. A geopolitical shock, defined as an unexpected increase in risk, has a significantly negative effect on the development of the German economy, and stock prices fall. By comparison, German industrial production reacts more strongly to an unexpected geopolitical shock than its American counterpart, while the opposite is true for stock markets. Overall, the effects are relatively moderate, but to minimize them, deeper economic and political integration is recommended.
Subjects: 
geopolitical risk
industrial production
Germany
USA
JEL: 
C32
E52
E58
Persistent Identifier of the first edition: 
Document Type: 
Article

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