Boer, Lukas; Menkhoff, Lukas; Rieth, Malte - 2021 - This (updated) version: May 2022
We study the multifaceted effects of trade policy shocks on financial markets using a structural vector autoregression … identified via event day heteroskedasticity. We find that restrictive US trade policy shocks affect US and international stock … appreciation of the US -Dollar. The effects are significant for several weeks or quarters. Decomposing the trade policy shocks …