06484oam 22015494 450 991078851800332120230721050842.01-4623-3768-61-4527-6324-01-282-55821-81-4519-1018-59786613822352(CKB)3360000000443270(EBL)1608450(SSID)ssj0000948575(PQKBManifestationID)11531046(PQKBTitleCode)TC0000948575(PQKBWorkID)10950155(PQKB)11063334(OCoLC)568151169(MiAaPQ)EBC1608450(IMF)WPIEE2007001(EXLCZ)99336000000044327020020129d2007 uf 0engur|n|---|||||txtccrPolicy Credibility and Sovereign Credit : The Case of New EU Member States /Manmohan Kumar, Jirí Jonáš, David HaunerWashington, D.C. :International Monetary Fund,2007.1 online resource (31 p.)IMF Working Papers"January 2007."1-4518-6565-1 Includes bibliographical references (p. 17-19).Contents; I. Introduction; II. Policy Credibility and Sovereign Credit; III. The Case of the New Member States; IV. Methodology and Data; A. Testing Strategy; B. Data; C. Estimation Issues; II. Results; A. All Countries; B. New Member States; C. Robustness; III. Conclusions; References; Figure; EU8-Government Debt, Interest Expenditure, and Effective Interest Rate (1995 = 100); Tables; 1. Variable Description; 2. Sovereign Ratings-Recursive Estimates; 3. Foreign Currency Spreads-Recursive Estimates; 4. Local Currency Yields-Recursive Estimates5. Illustrative Quantitative Effects of NMS Coefficients6. Sovereign Ratings-Robustness Checks; 7. Foreign Currency Spreads-Robustness Checks; 8. Local Currency Yields-Robustness Checks; Appendix; Computation of Bond Spreads; Appendix; Computation of Bond SpreadsReferences to policy credibility, particularly with regard to fiscal policy, are ubiquitous in both economic literature and financial markets, even though it is not directly observable. The case of the EU new member states (NMS)-emerging markets joining a supranational entity that is generally considered to have higher policy credibility-provides a unique experiment to assess the effects of credibility on sovereign credit. This paper examines the impact of EU accession on three key variables that can reflect in varying degrees policy credibility: sovereign ratings, foreign currency spreads, and local currency yields. The results suggest that the NMS appear to have enjoyed higher credibility compared to their peers.IMF Working Papers; Working Paper ;No. 2007/001Fiscal policyEurope, CentralFiscal policyEurope, EasternFiscal policyEuropean Union countriesCredit ratingsEurope, CentralCredit ratingsEurope, EasternCredit ratingsEuropean Union countriesDebts, PublicEurope, CentralDebts, PublicEurope, EasternDebts, PublicEuropean Union countriesBanks and BankingimfExports and ImportsimfFinance: GeneralimfInflationimfMoney and Monetary PolicyimfMonetary SystemsimfStandardsimfRegimesimfGovernment and the Monetary SystemimfPayment SystemsimfCurrent Account AdjustmentimfShort-term Capital MovementsimfGeneral Financial Markets: General (includes Measurement and Data)imfPrice LevelimfDeflationimfInterest Rates: Determination, Term Structure, and EffectsimfMonetary economicsimfInternational economicsimfFinanceimfMacroeconomicsimfCurrenciesimfCurrent account balanceimfEmerging and frontier financial marketsimfReal interest ratesimfMoneyimfBalance of paymentsimfFinancial marketsimfPricesimfFinancial servicesimfFinancial services industryimfInterest ratesimfUnited StatesimfFiscal policyFiscal policyFiscal policyCredit ratingsCredit ratingsCredit ratingsDebts, PublicDebts, PublicDebts, PublicBanks and BankingExports and ImportsFinance: GeneralInflationMoney and Monetary PolicyMonetary SystemsStandardsRegimesGovernment and the Monetary SystemPayment SystemsCurrent Account AdjustmentShort-term Capital MovementsGeneral Financial Markets: General (includes Measurement and Data)Price LevelDeflationInterest Rates: Determination, Term Structure, and EffectsMonetary economicsInternational economicsFinanceMacroeconomicsCurrenciesCurrent account balanceEmerging and frontier financial marketsReal interest ratesMoneyBalance of paymentsFinancial marketsPricesFinancial servicesFinancial services industryInterest rates332335.4/12Kumar Manmohan1464134Jonáš Jirí495961Hauner David1485145International Monetary Fund.Fiscal Affairs Dept.DcWaIMFBOOK9910788518003321Policy Credibility and Sovereign Credit3844930UNINA