Search IMF Staff Papers


Advanced Search
Journal Description

Editorial Committee

How to Subscribe

Forthcoming Articles

Staff Papers Archive

Copyright Information

Use the free Adobe Acrobat Reader to view pdf files

United States and the IMF

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile




IMF Staff Papers Logo last updated: January 2002
Volume 48, Number 3
 
How Does U.S. Monetary Policy Influence Sovereign Spreads in Emerging Markets?
Vivek Arora and Martin Cerisola

Full Text of this Article (PDF 186K)
Download the dataset (zip file)

Abstract: This paper quantifies the impact of changes in U.S. monetary policy on sovereign bond spreads in emerging market countries. Specifically, the paper explores empirically how country risk, as proxied by sovereign bond spreads, is influenced by U.S. monetary policy, country-specific fundamentals, and conditions in global capital markets. While country-specific fundamentals are important in explaining fluctuations in country risk, the stance and predictability of U.S. monetary policy are also important for stabilizing capital flows and capital market conditions in emerging markets. [JEL E43, F36, G15]

2001 International Monetary Fund