Sovereign spreads within the European Monetary Union (EMU) arise because markets price-in heterogeneous country fundamentals, but also re-denomination risks, given incomplete nature of EMU. This creates a permanent risk financial fragmentation area. In this paper we claim that political decisions signal commitment to safeguarding adequate functioning euro area influence investors’ valuations. W...

Abstract How are parties' ideological positions and levels of populism connected? Existing research either advocates for a U‐shaped relationship between left‐right position their degree or uses specific dimensions two‐dimensional policy space to describe right‐wing populist parties. We provide an integrated perspective by arguing that is higher when parties put strong emphasis on collectivist h...