BIS paper finds sovereign risk key to fiscal-monetary links


Sovereign risk plays a major role in the interactions between monetary and fiscal policy, research published by the Bank for International Settlements finds.

In the working paper, Ana Aguilar, Carlos Cantú and Claudia Ramírez outline a semi-structural model designed to reflect key features of the Mexican economy. They model sovereign risk as a function of government debt, and emphasise how the risk premium affects investment and the exchange rate.

“We find that after a fiscal expansion, the

You are currently unable to copy this content. Please contact [email protected] to find out more.



Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!