Global Spillovers into Domestic Bond Markets in Emerging Market Economies
AbstractWhile fiscal conditions remain healthier than in advanced economies, emerging economies continue to be exposed to negative spillovers if global conditions were to become less favorable. This paper finds that domestic bond yields in emerging economies are heavily influenced by two international factors: global risk appetite and global liquidity. Using a novel approach, the analysis goes on to show that the vulnerability of emerging economies to these factors is not uniform but rather depends on country specific characteristics, namely fiscal fundamentals, financial sector openness and the external current account balance.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 13/264.
Date of creation: 23 Dec 2013
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-17 (All new papers)
- NEP-CSE-2014-01-17 (Economics of Strategic Management)
- NEP-IFN-2014-01-17 (International Finance)
- NEP-OPM-2014-01-17 (Open Economy Macroeconomics)
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