External authors

Chiara Angeloni

External author

Chiara Angeloni, an Italian citizen, is a former Bruegel research assistant. She holds a Master degree in Economics and Social Sciences at Bocconi University in Milan, with a MSc thesis on Real Exchange Rate Misalignments and Economic Growth. She has a Bachelor degree in Finance at Bocconi University, with a thesis on Asset Diversification through Real Estate.

Before joining Bruegel, she worked as stagiaire atypique at DG ECFIN in the European Commission.

Chiara’s main research interests include International Economics and Macroeconomics. She is fluent in Italian and English and she has good knowledge of Spanish.

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External Publication

Policy Lessons from the Eurozone Crisis

Co-authored by Chiara Angeloni and Silvia Merler. The current European crisis has shed light on several weaknesses and the institutional incompleteness characterizing the euro area. The manifestation of Europe's fragility was preceded by a large build-up of debt in the private sector, associated with national current account divergences and the deterioration of competitiveness particularly of the euro periphery countries. With the economic situation deteriorating, private sector debt became less credible, contaminating banks’ balance sheets and placing a heavy burden on governments. A sovereign-bank vicious circle emerged: on the one hand, with banking risk translating into higher sovereign risk because of the governments’ guarantor role and, on the other hand, with the deterioration of government's creditworthiness affecting the banking systems through banks’ sovereign bond holdings. In principle, this negative feedback can be stopped by breaking one of the channels of transmission. A banking union at the European level is proposed as one solution.

By: Guntram B. Wolff, Silvia Merler and Chiara Angeloni Topic: Global economy and trade, Macroeconomic policy Date: December 13, 2012
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Blog Post

Chart of the week: EU Cohesion Policy and the role of national governments

The official mission of EU Cohesion Policy is to reduce “disparities between the levels of development of the various regions and the backwardness of the least favoured regions”. We run standard convergence analysis and find that this rather broad policy objective is only half-met. Countries and regions in Europe have been converging over the last […]

By: Benedicta Marzinotto and Chiara Angeloni Topic: Macroeconomic policy Date: October 29, 2012
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Blog Post

Blogs review: The Events Study methodology

What’s at stake: The event study approach – a methodology in finance and economics used to detect the presence of event-induced returns within a period – has become ubiquitous in recent debates about the impact of unconventional monetary operations. But its identifying assumptions are generally not very well understood. In this review, we explain the […]

By: Jérémie Cohen-Setton and Chiara Angeloni Topic: Macroeconomic policy Date: October 8, 2012
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Blog Post

European governance

The bond market consequences of Mr Draghi

In the last two months, several events have had an impact on the sovereign bond market: the 29 June Euro Summit, Mario Draghi’s 26 July speech at the Global Investment Conference in London, and the European Central Bank Governing Council Decisions of 2 August and 6 September. Sovereign bond yields have come down significantly recently […]

By: Chiara Angeloni Topic: European governance, Macroeconomic policy Date: September 19, 2012
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Blog Post

Are all euro summits the same? Market perceptions before and after

Commentators have frequently argued that all Euro Summits exhibit a similar pattern with significant euphoria after the summit in the financial markets that then soon abates when markets wake up to the actual difficulties of implementing decisions[1]. In this contribution, we study the pattern in government bond yields in the five days before and after […]

By: Guntram B. Wolff and Chiara Angeloni Topic: Macroeconomic policy Date: July 11, 2012
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Blog Post

Chart of the week: the silent run

Yesterday’s informal dinner of the European Council discussed the growth agenda and the prospect for Eurobonds. But it also, for the first time, erred the idea of a supranational deposit guarantee scheme. This is something we had been advocating for a very long time but has taken a whole new sense of urgency with the […]

By: Shahin Vallée and Chiara Angeloni Topic: Macroeconomic policy Date: May 24, 2012
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Blog Post

Chart of the week: banking and sovereign risk: is it banks’ holding of government debt or banks’ location?

Since the start of the European sovereign debt crisis, the interdependence between banks and sovereign risk has been emphasised. This week's chart shows the positive correlation between sovereign and bank credit default swaps (CDS) for a number of euro-area countries during 2011.

By: Guntram B. Wolff and Chiara Angeloni Topic: Banking and capital markets, Macroeconomic policy Date: March 29, 2012
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Blog Post

LTRO, interbank stress and banks’ stock prices: a conundrum?

Stress in the interbank market increased steeply after July 2011. The figure below shows the pattern of the Euribor-Eonia Swap spread, an indicator of the interbank market stress, from 2007 up to now. A first peak was recorded at the end of September 2011 and then the stress peaked in December 2011. Since the end of December, the spread receded considerably and this can be linked to the long-term refinancing operations (LTRO) of the ECB which has provided abundant liquidity to banks to ensure their financing.

By: Chiara Angeloni and Guntram B. Wolff Topic: Banking and capital markets Date: March 28, 2012
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Working Paper

Are banks affected by their holdings of government debt?

This Working Paper sheds light on the link between sovereign and banking risk in the euro zone. It provides an empirical analysis of the impact of government debt holdings on the stock market performances of the European banks stress tested in the EBA’s July and December 2011 exercises.

By: Chiara Angeloni and Guntram B. Wolff Topic: Banking and capital markets, Macroeconomic policy Date: March 26, 2012