Inflation Targeting and Country Risk: An Empirical Investigation
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 hypot...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2013
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Schriftenreihe: | IMF Working Papers
Working Paper No. 13/21 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | 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 in stabilizing inflation |
Beschreibung: | 1 Online-Ressource (30 p) |
ISBN: | 1475554710 9781475554717 |
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spelling | Fouejieu, Armand Verfasser aut Inflation Targeting and Country Risk An Empirical Investigation Fouejieu, Armand Washington, D.C International Monetary Fund 2013 1 Online-Ressource (30 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 13/21 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 in stabilizing inflation Online-Ausg Roger, Scott Sonstige oth http://elibrary.imf.org/view/IMF001/20231-9781475554717/20231-9781475554717/20231-9781475554717.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Fouejieu, Armand Inflation Targeting and Country Risk An Empirical Investigation |
title | Inflation Targeting and Country Risk An Empirical Investigation |
title_auth | Inflation Targeting and Country Risk An Empirical Investigation |
title_exact_search | Inflation Targeting and Country Risk An Empirical Investigation |
title_exact_search_txtP | Inflation Targeting and Country Risk An Empirical Investigation |
title_full | Inflation Targeting and Country Risk An Empirical Investigation Fouejieu, Armand |
title_fullStr | Inflation Targeting and Country Risk An Empirical Investigation Fouejieu, Armand |
title_full_unstemmed | Inflation Targeting and Country Risk An Empirical Investigation Fouejieu, Armand |
title_short | Inflation Targeting and Country Risk |
title_sort | inflation targeting and country risk an empirical investigation |
title_sub | An Empirical Investigation |
url | http://elibrary.imf.org/view/IMF001/20231-9781475554717/20231-9781475554717/20231-9781475554717.xml |
work_keys_str_mv | AT fouejieuarmand inflationtargetingandcountryriskanempiricalinvestigation AT rogerscott inflationtargetingandcountryriskanempiricalinvestigation |