TY - BOOK ID - 84659276 TI - Inflation Targeting and Country Risk : An Empirical Investigation AU - Fouejieu, Armand. AU - Roger, Scott. PY - 2013 SN - 1475523890 1475558686 1299264816 1475554028 9781475554021 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Inflation targeting KW - Country risk KW - Country risk, Political KW - Political risk (Foreign investments) KW - Risk KW - Targeting, Inflation KW - Monetary policy KW - Econometric models. KW - Econometric models KW - E-books KW - Exports and Imports KW - Inflation KW - Investments: General KW - Money and Monetary Policy KW - Central Banks and Their Policies KW - International Lending and Debt Problems KW - Debt KW - Debt Management KW - Sovereign Debt KW - Monetary Policy KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Price Level KW - Deflation KW - Macroeconomics KW - Monetary economics KW - International economics KW - Return on investment KW - External debt KW - Monetary policy frameworks KW - National accounts KW - Prices KW - Saving and investment KW - Debts, External KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84659276 AB - The sovereign debt crisis in Europe has highlighted the role of country risk premia as a link between countries’ fiscal and external balances, financial conditions and monetary policy. The purpose of this paper is to estimate how adoption of inflation targeting (IT) affects spreads. It is hypothesized that country risk premia for IT countries (especially among emerging market economies) may be lower than for other countries owing to greater policy predictability and more stable long-term inflation. The findings suggest that IT reduces the risk premium, both through adoption of the IT regime, and through the observed track record in stabilizing inflation. ER -