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Inflation targeting credibility and sovereign risk: evidence from Colombia

Juan Camilo Galvis Ciro () and Helder de Mendonça ()

Applied Economics Letters, 2016, vol. 23, issue 14, 984-990

Abstract: This article relates to the literature on sovereign risk in developing countries. In particular, we present empirical evidence to address the effect of inflation targeting credibility on sovereign risk based on the Colombian experience. The findings denote that credibility is an important improvement in the institutional framework to reduce the sovereign risk premium.

Date: 2016
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Citations: View citations in EconPapers (2)

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DOI: 10.1080/13504851.2015.1125425

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