In this paper, it is shown that, contrary to standard arguments, fiscal discipline is not substantially enhanced by a fixed exchange rate regime. This study is based on data from 116 countries collected from 1975 to 2004 and uses various estimation techniques for dynamic panel data, in...

In this paper, we propose a new method to assess the impact of sovereign ratings on sovereign bond yields. We estimate the impulse response of the interest rate, following a change in the rating. Since ratings are ordinal and moreover extremely persistent, it proves difficult to estimate those...

Mit Beiträgen von: Dieter Bender, Tobias Bidlingmaier; Carsten Eckel, Makram El-Shagi; Michael Frenkel, Hans-Rimbert Hemmer, Andreas Irmen; Ulf von Kalckreuth, Ralf Krüger, Helga Luckenbach; Ronald McKinnon; Edmund S. Phelps; Stefan Reitz, Gerhard Rübel; Karlhans Sauernheimer; Jennifer Seith;...

In this paper, it is shown that, contrary to standard arguments, fiscal discipline is not substantially enhanced by a fixed exchange rate regime. This study is based on data from 116 countries collected from 1975 to 2004 and uses various estimation techniques for dynamic panel data, in...