Limiting risk premia in EMEs: The role of FX reserves

E. Kohlscheen

Economics Letters, 2020, vol. 196, issue C

Abstract: Low debt and inflation, and higher growth reduce default risk. FX reserves do not matter for risk whenever CDS spreads are below the median. But higher FX buffers clearly reduce risk at the higher end of the sovereign risk spectrum.

Keywords: Debt; Emerging markets; Fiscal policy; Sovereign risk; International reserves (search for similar items in EconPapers)
JEL-codes: E58 F30 F40 H60 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:196:y:2020:i:c:s016517652030344x

DOI: 10.1016/j.econlet.2020.109567

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