Heinlein, Reinhold; Legrenzi, Gabriella; Mahadeo, Scott … - 2024
We empirically assess the interlinkages between sovereign risk, measured in terms of CDS spreads, and exchange rates … apply for the movements of the US dollar relative to other currencies, where knowledge on movements of emerging currencies … and policymakers, showing all interlinkages between sovereign risk and exchange rates across their entire distribution. …