Global Monetary Tightening
  • Release Date : 12 December 2014
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 28 pages
  • ISBN 13 : 9781475584691
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Download or read book entitled Global Monetary Tightening by author: Mr.Julio Escolano which was release on 12 December 2014 and published by International Monetary Fund with total page 28 pages . This book available in PDF, EPUB and Kindle Format. This paper finds that tightening global financial conditions can worsen emerging economies’ public debt dynamics through an increasing interest rate-growth differential, particularly if coupled with high global risk aversion. Latin America and emerging Europe are the regions most likely to be adversely affected. In addition, historical evidence—analyzed by means of a Poisson count model—suggests that the frequency of sovereign debt crises increases in emerging economies at the early stage of U.S. monetary tightening cycles, at times in which the term spread also rises. The timing may be related to abrupt switches of expectations about the future course of policy in the early stages of tightening cycles.