Do Economists' and Financial Markets' Perspectiveson the New Members of the Eu Differ?
AbstractIn the past several years, the ten new Central and Eastern European members of the European Union have enjoyed rapid growth but frequently alongside growing external imbalances. Economists have pointed to rising vulnerabilities, but markets compressed sovereign bond yields. This paper examines the evidence from the perspective of economists'' vulnerability analysis and markets'' pricing of sovereign bonds. It finds that spread are lower than can be explained by "fundamentals" and speculates on the causes and permanence of this yield compression.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 07/65.
Date of creation: 01 Mar 2007
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-04 (All new papers)
- NEP-EEC-2007-05-04 (European Economics)
- NEP-HPE-2007-05-04 (History & Philosophy of Economics)
- NEP-TRA-2007-05-04 (Transition Economics)
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