01753cas a2200253 a 4500 AALejournalIMF013324 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475554717 1018-5941 BD-DhAAL BD-DhAAL Fouejieu, Armand. Inflation Targeting and Country Risk : An Empirical Investigation / Armand Fouejieu, Scott Roger. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The sovereign debt crisis in Europe has highlighted the role of country risk premia as a link between countries' fiscal and external balances, financial conditions and monetary policy. The purpose of this paper is to estimate how adoption of inflation targeting (IT) affects spreads. It is hypothesized that country risk premia for IT countries (especially among emerging market economies) may be lower than for other countries owing to greater policy predictability and more stable long-term inflation. The findings suggest that IT reduces the risk premium, both through adoption of the IT regime, and through the observed track record in stabilizing inflation. Mode of access: Internet Roger, Scott. IMF Working Papers; Working Paper ; No. 2013/021 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/021/001.2013.issue-021-en.xml IMF e-Library