Volatility in spanish financial markets: the recent experience
- Autores: María Pérez Jurado, Soledad Núñez Ramos, Juan Ayuso Huertas
- Localización: Documentos de trabajo - Banco de España, ISSN 0213-2710, Nº 1, 1996, págs. 5-51
- Idioma: inglés
- Enlaces
- Dialnet Métricas: 3 Citas
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Resumen
The potential negative consequences of high financial volatility have been an important concern recently. Although its empirical relevance has not been proved conclusively, clear theoretic and intuitive arguments justify this concern. Many efforts have been conducted, therefore, to determine which is the relevant concept of volatility and how to measure it, which factors explain the course it follows, and which steps should be taken in order to curb volatility. In this paper we present evidence on these issues focusing on the Spanish experience.
Spanish financial markets are an interesting case study because of al least two reasons. First, although they have developed but relatively recently, they have quickly and effectively become part of the general processes of innovation, globalisation and internationalisation. And second, there have been major economic policy changes affecting the Spanish financial arena, such as the entry, in 1989, of the peseta into the Exchange Rate Mechanism (ERM) of the European Monetary System (EMS) or the opening of derivatives markets in 1990.
