Chinese and European Financial Systems: Instability Drivers and Contagion Channels

Authors

• Paolo Canofari, LUISS School of European Political Economy
• Alessandro Del Ponte, Chapman UniversityFollow

Document Type

Article

Publication Date

10-18-2018

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.

Comments

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in International Advances in Economic Research, volume 24, issue 4, in 2018 following peer review.  The final publication may differ and is available at Springer via https://doi.org/10.1007/s11294-018-9713-9.

A free-to-read copy of the final published article is available here.

Recommended Citation

Canofari, P., & Del Ponte, A. (2018). Chinese and European Financial Systems: Instability Drivers and Contagion Channels. International Advances in Economic Research, 24(4), 311-324. https://doi.org/10.1007/s11294-018-9713-9

Peer Reviewed

1

Copyright

International Atlantic Economic Society