SSE/EFI Working Paper Series in Economics and Finance
How Government Bond Prices Reflect Wartime Events. The Case of the Stockholm Market.
() and Bruno S. Frey
Abstract: How are political events reflected in financial asset
prices? Break points in sovereign debt prices are analyzed for Denmark,
Norway, Finland, Sweden, Germany and Belgium during 1930-1948, using unique
data from the Stockholm Stock Exchange. Unlike in countries involved in
WWII, this market was unregulated. The outbreak of World War II heavily
depressed prices of government bonds. Countries which were occupied
(Belgium, Denmark and Norway) or under attack (Finland) saw their debt
depreciate substantially. The battle of Stalingrad turns out indeed to be a
turning-point of the war. This approach represents a complementary
quantitative method to analyze the impact of political events.
Keywords: Financial Markets; Economic History; WWII; Europe; Cliometrics; (follow links to similar papers)
JEL-Codes: F34; G15; N24; N44; (follow links to similar papers)
24 pages, January 17, 2002
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom