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EEG | UMinho alumna publishes in the Financial Times Back

Monday, 5/25/2020   
susana campos martins
Susana Campos-Martins, holds a Bachelor, Master and a PhD in Economics awarded by the School of Economics and Management at the University of Minho. She is currently working at the University of Oxford and has published the article "Letter: WHO pronouncement needed careful judgment" in the Financial Times, with David F Hendry.
Following the Article published by the Financial Times on the relevance of the World Health Organization (WHO) in the Covid-19 pandemic, Susana Campos-Martins and Professor David F. Hendry wrote a letter to the Financial Times about the impact of WHO and its announcements on financial markets.
The co-authors resorted to the financial model of geopolitical volatility that Susana Campos-Martins has been developing with Professor Robert F. Engle. They found that for a panel of 32 sovereign debt indices around the world, two of the largest geopolitical shocks in the sample (1989-2020) occurred on the 9th and 12th of March earlier this year.
The first corresponds to the imposition of mandatory confinement in Italy and the second follows the announcement of the pandemic by the WHO on the afternoon of March 11 (local time) and the Speech of President Donald Trump from the Oval Office later that afternoon (local time). In both cases, the volatilities of sovereign debt indices were all well above average, which mirrors a vast impact on financial markets.
Had the WHO announced the pandemic earlier, as some argue, it could have been a false alarm and resulted in an unnecessary disruption of markets. Hence, decisions of this dimension and geopolitical nature deserve careful consideration and caution.

The article can be found here: https://on.ft.com/3e86hnR
Gabinete de Comunicação
Escola de Economia e Gestão
Universidade do Minho
Phone: 253 604541
e-mail: gci@eeg.uminho.pt
susana campos martins