DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS

: In the last decade the world has experienced a number of global crises which triggered economic downturns. Impacts from the global financial crisis, the global COVID pandemic, and Russia’s invasion of Ukraine trigger instability in financial markets. This paper explores similarities and difference...

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Main Authors: Alexandru VLADOI, Lara-Greta MERLING, Kevin CASHMAN
Format: Article
Language:English
Published: Academy of Economic Studies of Moldova (AESM), Center for Studies in European Integration 2023-12-01
Series:Eastern European Journal of Regional Studies
Subjects:
Online Access:https://csei.ase.md/journal/files/issue_92/3_EEJRS_Issue92_41-52.pdf
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author Alexandru VLADOI
Lara-Greta MERLING
Kevin CASHMAN
author_facet Alexandru VLADOI
Lara-Greta MERLING
Kevin CASHMAN
author_sort Alexandru VLADOI
collection DOAJ
description : In the last decade the world has experienced a number of global crises which triggered economic downturns. Impacts from the global financial crisis, the global COVID pandemic, and Russia’s invasion of Ukraine trigger instability in financial markets. This paper explores similarities and differences between these crises based on inflation and its energy-related components. A Vector Autoregressive (VAR) model is used to analyze both EU-level trends, as well as data for Romania. The findings indicate idiosyncratic shifts in the relationships between variables. The changes are often specific to individual shocks and the policy context. How policy makers respond to these shocks will also impact the fiscal space, the borrowing costs of countries, and the cost of servicing debt, which risks a return to the type of austerity policies that slowed down the post-financial crisis recovery. There is a need for more detailed research and investigations in policy responses designed to respond to ongoing events.
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institution Kabale University
issn 1857-436X
2537-6179
language English
publishDate 2023-12-01
publisher Academy of Economic Studies of Moldova (AESM), Center for Studies in European Integration
record_format Article
series Eastern European Journal of Regional Studies
spelling doaj-art-b1cd48de71f5466a882b216bd937cd212025-08-20T03:36:02ZengAcademy of Economic Studies of Moldova (AESM), Center for Studies in European IntegrationEastern European Journal of Regional Studies1857-436X2537-61792023-12-0192415210.53486/2537-6179.9-2.03DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETSAlexandru VLADOI0https://orcid.org/0009-0004-9917-4453Lara-Greta MERLING1https://orcid.org/0000-0001-6255-0823Kevin CASHMAN2ASE BucurestiASE BucurestiCenter for Economic and Policy Research: In the last decade the world has experienced a number of global crises which triggered economic downturns. Impacts from the global financial crisis, the global COVID pandemic, and Russia’s invasion of Ukraine trigger instability in financial markets. This paper explores similarities and differences between these crises based on inflation and its energy-related components. A Vector Autoregressive (VAR) model is used to analyze both EU-level trends, as well as data for Romania. The findings indicate idiosyncratic shifts in the relationships between variables. The changes are often specific to individual shocks and the policy context. How policy makers respond to these shocks will also impact the fiscal space, the borrowing costs of countries, and the cost of servicing debt, which risks a return to the type of austerity policies that slowed down the post-financial crisis recovery. There is a need for more detailed research and investigations in policy responses designed to respond to ongoing events.https://csei.ase.md/journal/files/issue_92/3_EEJRS_Issue92_41-52.pdfeconomic crisesenergy pricesexchange rate volatility and stock markets
spellingShingle Alexandru VLADOI
Lara-Greta MERLING
Kevin CASHMAN
DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS
Eastern European Journal of Regional Studies
economic crises
energy prices
exchange rate volatility and stock markets
title DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS
title_full DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS
title_fullStr DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS
title_full_unstemmed DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS
title_short DRIVERS AND IMPACTS OF INFLATION: A LOOK AT ENERGY PRICES, EXCHANGE RATE VOLATILITY, AND STOCK MARKETS
title_sort drivers and impacts of inflation a look at energy prices exchange rate volatility and stock markets
topic economic crises
energy prices
exchange rate volatility and stock markets
url https://csei.ase.md/journal/files/issue_92/3_EEJRS_Issue92_41-52.pdf
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