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Title: BREXIT referendum’s impact on the financial markets in the UK
Authors: Stoupos, Nikolaos
Kiohos, Apostolos
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Finance
Keywords: Forex risk
Stock markets
Government bond yield
Issue Date: Feb-2021
Source: Review of World Economics
Volume: 157
First Page: 1
Last Page: 19
Abstract: BREXIT might be considered the most paramount event of the past 40 years in modern English history. The present research attempts to examine the impact of BREXIT referendum vote on the British financial markets. The authors examine the impact of money and capital markets on the forex markets in the UK. In their research, they utilize the ECM-Realized-EGARCH model. Their findings support that there is an excess volatility on the GBP after BREXIT vote. In particular, a momentum investing strategy crash led to the excess volatility on the UK financial markets. Finally, they found out that a further devaluation of the GBP is likely, which may lead to an additional decrease of GBP value especially against the euro and the US dollar in the near future after BREXIT.
ISSN: 1610-2878
Electronic ISSN: 1610-2886
Other Identifiers: 10.1007/s10290-020-00393-z
Appears in Collections:Department of International and European Studies

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