Negative Euribor shocks boost industrial production in Southeastern Europe.
The article examines how changes in Euribor interest rates impact the economies of six Southeastern European countries from 2002 to 2016. By analyzing monthly data, the researchers found that when Euribor rates decrease, industrial production in these countries tends to increase, although the effect varies in size. However, the impact on foreign reserves, interest rates, and exchange rates is less clear. These findings offer important insights for policymakers in the region.