Economics Between Countries And Its Role in Economic Development

By Leellen Smith

This Book consists of three independent essays on International Economics. Chapter 1

studies the effects of Covid vaccine development on the international financial market.

Covid vaccine development has received worldwide attention since the beginning of the

pandemic. In this paper, I construct a weekly sentiment index about Covid vaccine

development progress using the pre-trained NLP model Fin-BERT based on four major

US newspapers. I show that the vaccine development sentiment has significant impacts

on the international financial market. Positive vaccine development sentiment is

associated with a decrease of VIX index, significant weekly capital inflows into emerging

markets and an appreciation of emerging market currencies against US dollars. Then, I

use the consumption-based asset pricing model to decompose the currency carry trade risk

premia between US and emerging markets into the quantity of US consumption growth

risk and the unit price of risk. I find that positive vaccine development sentiment also

decreases the price of risk in the international financial markets.

• Format: Paperback
• Language: English
• ISBN: B0DQVSP8VM
• ISBN13: 9798348160357
• Release Date: December 2024
• Publisher: Endless
• Length: 106 Pages
• Weight: 0.37 lbs.
• Dimensions: 0.3" x 6.0" x 9.0"