Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302558 
Year of Publication: 
2024
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 37/2024
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
Geopolitical risk cannot be measured in a universal way. We develop new geopolitical risk indicators relying on local newspaper coverage to account for different perceptions. Using Russia as a case study, we demonstrate that geopolitical risk shocks identified from local news sources have significant adverse effects on the Russian economy, whereas geopolitical risk shocks identified from English-language news sources do not. We control for restricted press freedom by analyzing state-controlled and independent media separately. Employing a novel Russian sanctions index, we illustrate that geopolitical risk shocks propagate beyond the sanctions channel. Still, sanctions worsen the inflationary impact of geopolitical risk shocks substantially.
Subjects: 
geopolitical risk
risk perceptions
Russia
sanctions
shock transmission
JEL: 
E32
E44
E71
F44
F51
G41
ISBN: 
978-3-98848-012-5
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.