Investor Sentiment, Sovereign Debt Mispricing, and Economic Outcomes /

We find that countries which are able to borrow at spreads that seem low given fundamentals (for example because investors take a bullish view on a country's future), are more likely to develop economic difficulties later on. We obtain this result through a two-stage procedure, where a first re...

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Bibliographic Details
Main Author: Al Amine, Ramzy
Other Authors: Willems, Tim
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2020.
Series:IMF Working Papers; Working Paper ; No. 2020/166
Online Access:Full text available on IMF