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The effect of G20 summits on global financial markets

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  • Stracca, Livio
  • Lo Duca, Marco

Abstract

In the wake of the global financial crisis, the G20 has become the most important forum of global governance and cooperation, largely replacing the once powerful G7. In this paper we run an event study to test whether G20 meetings at ministerial and Leaders level have had an impact on global financial markets. We focus on the period from 2007 to 2013, looking at equity returns, bond yields and measures of market risk such as implied volatility, skewness and kurtosis. Our main finding is that G20 summits have not had a strong, consistent and durable effect on any of the markets that we consider, suggesting that the information and decision content of G20 summits is of limited relevance for market participants. JEL Classification: G14, G15, F53

Suggested Citation

  • Stracca, Livio & Lo Duca, Marco, 2014. "The effect of G20 summits on global financial markets," Working Paper Series 1668, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20141668
    Note: 335958
    as

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    File URL: https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1668.pdf
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    References listed on IDEAS

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    13. repec:pri:cepsud:161blinder is not listed on IDEAS
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    Cited by:

    1. Cheng, Gong, 2015. "The Global Financial Safety Net through the Prism of G20 Summits," MPRA Paper 68070, University Library of Munich, Germany, revised Nov 2015.
    2. Anthony M Gould & Milène R Lokrou, 2018. "Paved with good intentions: Misdirected idealism in the lead-up to 2008’s GFC," The Economic and Labour Relations Review, , vol. 29(4), pages 394-409, December.

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    More about this item

    Keywords

    event studies; financial crisis; G20; global financial markets; global governance; volatility;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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