The growing impact of political risk on financial markets | Crypto Craft

  • The growing impact of political risk on financial markets

    From bruegel.org

    Political risk is increasingly driving financial markets. Government coalitions fail and snap elections are called. Tariff wars reshape global supply chains. The conflicts in Ukraine and the Gulf disrupt commodity flows. The United States pushes a coercive foreign policy over Greenland. But what exactly is political risk, and how can it be measured? What effect does it have on financial markets and can investors and policymakers protect themselves from such effects? Political risk is an often-used but hard-to-define concept. The classic definition (Robock, 1971) is that political risk arises from discontinuities in ... (full story)

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