Inflation targeting and country risk:
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Bibliographic Details
Main Author: Fouejieu A., Armand (Author)
Format: Electronic eBook
Language:English
Published: [Washington, D.C.] International Monetary Fund ©2013
Series:IMF working paper WP/13/21
Subjects:
Online Access:Volltext
Item Description:Title from PDF title page (IMF Web site, viewed Jan. 31, 2013). - "January 2013."
The sovereign debt crisis in Europe has highlighted the role of country risk premia as a link between countries' fiscal and external balances, financial conditions and monetary policy. The purpose of this paper is to estimate how adoption of inflation targeting (IT) affects spreads. It is hypothesized that country risk premia for IT countries (especially among emerging market economies) may be lower than for other countries owing to greater policy predictability and more stable long-term inflation. The findings suggest that IT reduces the risk premium, both through adoption of the IT regime, and through the observed track record
Includes bibliographical references
Physical Description:1 Online-Ressource (30 pages)
ISBN:9781475554021
1475554028

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