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Rating the Rating Agencies

Author Info

  • Reinhart, Carmen
  • Goldstein, Morris
  • Kaminsky, Graciela

Abstract

In this study, we begin by assessing the ability of sovereign credit ratings to anticipate crises. In addition, given the wave of sovereign credit ratings downgrades that have followed the crises in Asia, we investigate formally the extent to which credit ratings are reactive. Along the way, we discuss a small but growing literature that examines to what extent financial markets anticipate crises.

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File URL: http://mpra.ub.uni-muenchen.de/24578/1/MPRA_paper_24578.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24578.

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Date of creation: 2000
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Handle: RePEc:pra:mprapa:24578
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Keywords: credit ratings; default; crisis; downgrades; prediction; banks; currency;

Find related papers by JEL classification:

  • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
  • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
  • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
  • F3 - International Economics - - International Finance
  • F31 - International Economics - - International Finance - - - Foreign Exchange
  • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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  24. Kamin, Steve B. & Rogers, John H., 2000. "Output and the real exchange rate in developing countries: an application to Mexico," Journal of Development Economics, Elsevier, vol. 61(1), pages 85-109, February.
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