ABSTRACT
We investigate the joint dynamics of oil prices, financial liquidity and geopolitical risk, within a multi-country global vector autoregressive model. We find that low oil prices are expected to trigger higher levels of geopolitical risk and that decelerating financial liquidity serves as an accelerator.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 Detailed test results are omitted for space considerations but available upon request.