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Mar Domenech Palacios

Research

Division

Monetary Policy Research

Current Position

Graduate Programme Participant

Fields of interest

Macroeconomics and Monetary Economics,International Economics

Email

maria_del_mar.domenech_palacios@ecb.europa.eu

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 - BOX
The international role of the euro 2025
Details
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 - ARTICLE
Financial Stability Review Issue 1, 2025
Details
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 - BOX
Economic Bulletin Issue 3, 2025
Details
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 - BOX
The international role of the euro 2024
Details
JEL Code
Add JEL codes separated by semi-colon. : General Economics and Teaching
2022
UK regulation after Brexit revisited
UK subsidiaries in the EU after Brexit
  • Meredith Crowley, Mar Domenech Palacios, Elisa Faraglia, Chryssi Giannitsarou
2022
IMF Working Paper No. 2022/130
  • Anil Ari, Jean-Marc B. Atsebi, Mar Domenech Palacios
2021
Regional Economic Outlook, Chapter 2
  • Anil Ari, Jean-Marc B. Atsebi, Mar Domenech Palacios