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The dynamics of the currency and financial markets in 2016. The short and mid-run perspectives

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  • Andrei Rădulescu

Abstract

The international financial markets have witnessed mainly positive evolutions in 2016, a year with divergent dynamics and several episodes of increasing volatility (pro-Brexit vote, US elections). The divergent monetary policies were reflected in the money markets, with the LIBOR hitting the 2009 level, and EURIBOR declining to record levels. The low real interest rates have contributed to an increase in the stock markets (to record levels) and in real estate prices. Overall, the financial markets proved to be resilient to the pro-Brexit vote, while the result of the US election triggered a new wave of optimism. 2016 was also the year of the dollar, the US currency reaching its highest level since the early 2000s.

Suggested Citation

  • Andrei Rădulescu, 2017. "The dynamics of the currency and financial markets in 2016. The short and mid-run perspectives," Conjunctura economiei mondiale / World Economic Studies, Institute for World Economy, Romanian Academy, pages 73-87.
  • Handle: RePEc:iem:conjun:y:2017:p:73-87
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