This paper identifies systemic risk levels in the Eurozone and China. We first analyze the political and macro-financial factors underlying potential financial instability in both currency areas. Then, we examine the impact of a possible breakup of the Eurozone on the Chinese financial system and the risk of redenomination of Chinese assets expressed in Euros. Finally, considering the increasing credit gap in the Chinese economy and the enduring political instability in several Eurozone countries, we warn against a possible opening of contagion channels between China and Europe.

Chinese and European Financial Systems: Instability Drivers and Contagion Channels / Canofari, Paolo; Del Ponte, Alessandro. - In: INTERNATIONAL ADVANCES IN ECONOMIC RESEARCH. - ISSN 1083-0898. - 24:4(2018), pp. 311-324. [10.1007/s11294-018-9713-9]

Chinese and European Financial Systems: Instability Drivers and Contagion Channels

Canofari Paolo
Membro del Collaboration Group
;
2018

Abstract

This paper identifies systemic risk levels in the Eurozone and China. We first analyze the political and macro-financial factors underlying potential financial instability in both currency areas. Then, we examine the impact of a possible breakup of the Eurozone on the Chinese financial system and the risk of redenomination of Chinese assets expressed in Euros. Finally, considering the increasing credit gap in the Chinese economy and the enduring political instability in several Eurozone countries, we warn against a possible opening of contagion channels between China and Europe.
Sovereign risk, Financial Stability, Eurozone China, Contagion
Chinese and European Financial Systems: Instability Drivers and Contagion Channels / Canofari, Paolo; Del Ponte, Alessandro. - In: INTERNATIONAL ADVANCES IN ECONOMIC RESEARCH. - ISSN 1083-0898. - 24:4(2018), pp. 311-324. [10.1007/s11294-018-9713-9]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11385/181649
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