Bundesbank paper looks at short sellers in the pandemic

Deutsche Bundesbank headquarters, Frankfurt
The Deutsche Bundesbank
Fabian Stürtz

Short sellers realised the Covid-19 pandemic would have especially severe economic effects in fiscally constrained European countries, research published by the Deutsche Bundesbank finds.

In On the importance of fiscal space: Evidence from short sellers during the COVID-19 pandemic, Stefan Greppmair, Stephan Jank and Esad Smajlbegovic use data on short positions disclosed under the European Union Short Selling Regulation.

The data, which covers trades made in the UK and Norway as well as EU

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