This paper provides an analysis of the potential common influences behind the synchronicity of financial cycles in four EEMS: Romania, Hungary, Poland and the Czech Republic. We checked if the common movements in these EEMS appear under the influence of the global financial cycle measured in terms of quantities - through capital flows - risk premiums and global risk aversion for investors. According to results, there is a strong correlation between yields, equity prices, house prices, credit and global capital flows, and a weaker one in terms of risk premiums (represented by the CDS) and the risk aversion (measured by the VIX index) which is a measure traditionally correlated with the global financial cycle.
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