Mar Domenech Palacios
Research
- Division
Monetary Policy Research
- Current Position
-
Graduate Programme Participant
- Fields of interest
-
Macroeconomics and Monetary Economics,International Economics
- Education
- 2019-2024
PhD in Economics, University of Cambridge
- 2018-2019
MPhil in Economic research, University of Cambridge
- 2016-2017
Master's degree in Specialised Economic Analysis: ITFD, Barcelona School of Economics
- 2011-2016
Bachelor's degree in Law, Pompeu Fabra University
- 2011-2016
Bachelor's degree in Economics, Pompeu Fabra University
- Professional experience
- 2023-2025
Economist Graduate Programme Participant - International Policy Analysis Division, Directorate General International and European Relations, European Central Bank
- 2021
Fund PhD internship programme - International Monetary Fund
- 11 June 2025
- THE INTERNATIONAL ROLE OF THE EURO - BOXThe international role of the euro 2025Details
- Abstract
- The Box examines the borrowing behaviour of US firms that issue euro-denominated bonds, commonly referred to as "Reverse Yankees," and explores the factors influencing their choice of issuance currency, including the risk-free rate differentials between the US and euro area, credit spreads, and the cost of hedging foreign exchange risk. Empirical evidence suggests that both declining hedged and unhedged borrowing costs in euro provide an incentive for US firms to issue more Reverse Yankee bonds. Changes in expected borrowing costs play an important role for the euro’s appeal as an international funding currency.
- JEL Code
- F31 : International Economics→International Finance→Foreign Exchange
G12 : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates
G15 : Financial Economics→General Financial Markets→International Financial Markets
E43 : Macroeconomics and Monetary Economics→Money and Interest Rates→Interest Rates: Determination, Term Structure, and Effects
F34 : International Economics→International Finance→International Lending and Debt Problems
- 20 May 2025
- FINANCIAL STABILITY REVIEW - ARTICLEFinancial Stability Review Issue 1, 2025Details
- Abstract
- Trade tensions can be a threat to financial stability, with both the implementation of trade restrictions and trade policy uncertainty resulting in adverse consequences. In this special feature, we show that trade policy uncertainty can adversely affect the real economy as well as banks’ funding, asset quality, profitability and lending. Policy authorities need to identify risks stemming from trade tensions, monitor their transmission and evaluate their potential impact on financial stability. Sound capital and liquidity buffers are financial institutions’ first line of defence to absorb shocks stemming from trade disruptions. However, banks should also conduct regular assessments to identify and evaluate these specific risks. In addition, they should diversify portfolios to minimise their exposure to such risks. A box within the special feature analyses the risks of euro area equities repricing across sectors in response to developments in the United States, with a particular focus on news relating to trade policy.
- JEL Code
- E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
F13 : International Economics→Trade→Trade Policy, International Trade Organizations
G18 : Financial Economics→General Financial Markets→Government Policy and Regulation
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
- 2 May 2025
- ECONOMIC BULLETIN - BOXEconomic Bulletin Issue 3, 2025Details
- Abstract
- This box examines the drivers behind the prolonged resilience of US corporate bond spreads, prior to their recent abrupt widening, in order to better understand the risks of decompression. The previous compression was largely supported by a strong risk appetite and a compositional shift in bond issuance toward higher-quality firms. However, the need to refinance maturing debt in a high-interest rate environment – combined with a rapidly deteriorating risk sentiment – exposes US corporates to heightened vulnerability and increases their sensitivity to adverse shocks.
- JEL Code
- G12 : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates
G15 : Financial Economics→General Financial Markets→International Financial Markets
E44 : Macroeconomics and Monetary Economics→Money and Interest Rates→Financial Markets and the Macroeconomy
- 12 June 2024
- THE INTERNATIONAL ROLE OF THE EURO - BOXThe international role of the euro 2024Details
- JEL Code
- Add JEL codes separated by semi-colon. : General Economics and Teaching
- 2022
- UK regulation after Brexit revisitedUK subsidiaries in the EU after Brexit
- 2022
- IMF Working Paper No. 2022/130
- 2021
- Regional Economic Outlook, Chapter 2