While there have been many studies that examine contagion within the Euro-zone, this paper investigates the potential contagion from changes in the Greek sovereign risk premium over 2009-2016, as measured by the yield on 10 year government bonds, to six European countries outside of the Euro-zone all of which operated a managed float against the Euro. We find evidence of contagion to potential Euro-zone ascendants (Czech Republic, Hungary and Poland), but ‘flight to safety’ (or safe haven) effects for the United Kingdom, Sweden and Switzerland.
History
School
Business and Economics
Department
Economics
Published in
Applied Economics
Volume
49
Issue
59
Pages
5895 - 5904
Citation
BIRD, G. ...et al., 2017. Safe haven or contagion? The disparate effects of Euro-zone crises on non-Euro-zone neighbours. Applied Economics, 49(59), pp. 5895-5904.
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
Acceptance date
2017-08-01
Publication date
2017-08-24
Copyright date
2017
Notes
This is an original manuscript of an article published by Taylor & Francis in Applied Economics, on 24 Aug 2017 available online: https://doi.org/10.1080/00036846.2017.1358445