CEU Electronic Theses and Dissertations, 2009
| Author | Rakic, Neno |
|---|---|
| Title | External Vulnerabilities, Financial Markets and Politics: Cases of Croatia and Hungary |
| Summary | This paper looks into the relations between external vulnerabilities, crises and politics and tries to see how they influence financial markets’ decisions and investors’ risk perceptions. I will use case studies of Croatia and Hungary, as two countries, which experienced different valuation of the financial markets in a time of the 2008 financial crisis. This paper, however, does not only address economic side of the problem but also tries to look on these issues from the political perspective. Also, solvency and liquidity testing will be performed, as well as balance sheet approach, to determine the levels of vulnerabilities of Croatia and Hungary. The major finding is that politics possesses good explanatory power in evaluating the risks connected with external vulnerabilities, sudden stops and capital flight. Despite this, a stable central bank also contributes to the overall macroeconomic stability and credibility of a country. |
| Supervisor | Horvath, Julius |
| Department | International Relations MA |
| Full text | https://www.etd.ceu.edu/2009/rakic_neno.pdf |
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