Contributions

  • Bannister, Geoffrey J. - Contributor
  • Tamirisa, Natalia T. - Contributor
  • International Monetary Fund. Policy Development and Review Dept. - Contributor

Publication

2005 - International Monetary Fund, Policy Development and Review Dept., Washington, D.C, District of Columbia

Language

English

Word Count

7,750 words, Guess

Page Count

31 pages

Identifiers

  • Better World Books9781452760261
  • Better World Books9781451861020
  • Better World Books9781451906387
  • Open LibraryOL19851860M

Classifications

  • LCCHG173

Description

This paper examines how emerging bond markets react to macroeconomic announcements. Global bond spreads respond to rating actions and changes in global interest rates rather than domestic data and policy announcements. All announcements affect market volatility. Data and policy announcements reduce uncertainty and stabilize the trading environment, while rating actions cause greater volatility. Results are broadly robust to country-specific and panel analyses, assuming conditional variance and controlling for the surprise content of news. In subsamples, announcements are found to matter less for countries with more transparent policies and higher credit ratings. In a crisis, rating actions become less important, and investors focus more on simple and timely indicators, like CPI.

Subjects

Series Statement

  • IMF working paper -- WP/05/83

Links

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