Fiscal Policy Announcements of Italian Governments and Spread Reaction during the Sovereign Debt Crisis

Falagiarda, Matteo ; Gregori, Wildmer Daniel (2014) Fiscal Policy Announcements of Italian Governments and Spread Reaction during the Sovereign Debt Crisis. Bologna: Dipartimento di Scienze economiche DSE, p. 24. DOI 10.6092/unibo/amsacta/4072. In: Quaderni - Working Paper DSE (961). ISSN 2282-6483.
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Abstract

This paper attempts to evaluate the effects of fiscal policy announcements by the Italian government on the long-term sovereign bond spread of Italy relative to Germany. After collecting data on relevant fiscal policy announcements, we perform an econometric comparative analysis between the three cabinets that followed one another during the period 2009-2013. The results suggest that only fiscal policy announcements made by members of Monti's cabinet have been effective in influencing the Italian spread, revealing a remarkable credibility gap between Monti's technocratic administration and Berlusconi's and Letta's governments.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Falagiarda, Matteo
Gregori, Wildmer Daniel
Keywords
Fiscal policy announcements, political communication, Italian government, sovereign debt crisis, interest rate spread, GARCH models
Subjects
ISSN
2282-6483
DOI
Deposit date
04 Sep 2014 13:16
Last modified
16 Mar 2015 14:45
URI

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