Hannes Böhm

Hannes Böhm
Current Position

since 4/17

Economist in the Department of Financial Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • financial stability
  • monetary policy
  • financial crises

Hannes Böhm joined the Department of Financial Markets as a doctoral student in April 2017. His research focuses on the interaction between financial institutions and sovereign states during the Eurocrisis, financial stability as well as the effects and transmission channels of monetary policy.

Hannes Böhm received his bachelor's degree from University of Münster and his master's degree from Leipzig University.

Your contact

Hannes Böhm
Hannes Böhm
Mitglied - Department Financial Markets
Send Message +49 345 7753-860

Publications

Working Papers

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Avoiding the Fall into the Loop: Isolating the Transmission of Bank-to-Sovereign Distress in the Euro Area and its Drivers

Hannes Böhm Stefan Eichler

in: IWH Discussion Papers, No. 19, 2018

Abstract

We isolate the direct bank-to-sovereign distress channel within the eurozone’s sovereign-bank-loop by exploiting the global, non-eurozone related variation in stock prices. We instrument banking sector stock returns in the eurozone with exposure-weighted stock market returns from non-eurozone countries and take further precautions to remove any eurozone crisis-related variation. We find that the transmission of instrumented bank distress, while economically relevant, is significantly smaller than the corresponding coefficient in the unadjusted OLS framework, confirming concerns on reverse causality and omitted variables in previous studies. Furthermore, we show that the spillover of bank distress is significantly stronger for countries with poorer macroeconomic performances, weaker financial sectors and financial regulation and during times of elevated political uncertainty.

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