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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…mehr

Produktbeschreibung
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.
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