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Foreign exchange reserves (FER), especially dollar assets, are vital for a developing country to maintain economic stability, foster growth, and protect against unexpected amendments. In recent years, particularly since the onset of COVID-19, several emerging countries have experienced...
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The potential mutation of the Sub-Prime banking crisis into a sovereign debt one in Euro area countries is investigated … the end 2009 the probability of observing a Euro area country defaulting is less likely than six month before … self-fulfilling, sovereign debt or currency crises in Euro area in the future. -- king crisis ; sovereign debt crisis …
Persistent link: https://www.econbiz.de/10003951604
This paper examines whether the Big Three credit rating agencies actually played as active a role in the Euro Crisis as …
Persistent link: https://www.econbiz.de/10011317827
Macroeconomic adjustment in the euro area periphery was more recessionary than pre-crisis imbalances would have …
Persistent link: https://www.econbiz.de/10012033212
The IMF's Vulnerability Exercise (VE) is a cross-country exercise that identifies country-specific near-term macroeconomic risks. As a key element of the Fund's broader risk architecture, the VE is a bottom-up, multi-sectoral approach to risk assessments for all IMF member countries. The VE...
Persistent link: https://www.econbiz.de/10013334937
dynamics of output, sovereign debt and financial stress in some euro area and other industrialized countries. …
Persistent link: https://www.econbiz.de/10010498572
During the last crisis, developed economies' sovereign Credit Default Swap (hereafter CDS) premia have gained in importance as a tool for approximating credit risk. In this paper, we fit a dynamic factor model to decompose the sovereign CDS spreads of ten OECD economies into three components: a...
Persistent link: https://www.econbiz.de/10013074345
We use a network model of credit risk to measure market expectations of the potential spillovers from a sovereign default. Specifically, we develop an empirical model, based on the recent theoretical literature on contagion in financial networks, and estimate it with data on sovereign credit...
Persistent link: https://www.econbiz.de/10013045650