To err is human: rating agencies and the interwar foreign government debt crisis
AbstractDuring the 1930s, rating agencies took up a central role in regulatory supervision that they still have today. The proximate cause for this changeover was the economic shock of the Great Depression. Exploring the performance of rating agencies in assessing the risks of sovereign debt, an important segment of the bond market, we do not find that superior forecasting capacities can explain the agencies' growing importance.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 335.
Length: 46 pages
Date of creation: Dec 2010
Date of revision:
sovereign credit ratings; Great Depression; financial crisis; international bond markets;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-01-16 (All new papers)
- NEP-HIS-2011-01-16 (Business, Economic & Financial History)
- NEP-IFN-2011-01-16 (International Finance)
- NEP-REG-2011-01-16 (Regulation)
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