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Tag Archives: Country risk

Capital Flows to the Periphery: Still ‘push’, but with significantly lower risk spreads

Gabriel Aidar and Julia Braga (Guest Bloggers) We have, in our new paper, gone back to the old pull-push debate on determinants of capital inflows to emerging markets, to look at the behavior of country risk premium spreads. Our Principal Component Analysis of the country-risk spread series of ten emerging economies from 1999 to 2019 revealed that 86% of the total volatility of the original series can be represented by only two components, suggesting the prevalence of common factors in...

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