01697cas a2200241 a 4500 AALejournalIMF015955 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513516431 1018-5941 BD-DhAAL BD-DhAAL McGregor, Thomas. Pricing Sovereign Debt in Resource-Rich Economies / Thomas McGregor. Washington, D.C. : International Monetary Fund, 2019. 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 How do oil price movements affect sovereign spreads in an oil-dependent economy? I develop a stochastic general equilibrium model of an economy exposed to co-moving oil price and output processes, with endogenous sovereign default risk. The model explains a large proportion of business cycle fluctuations in interest-rate spreads in oil-exporting emerging market economies, particularly the countercyclicallity of interest rate spreads and oil prices. Higher risk-aversion, more impatient governments, larger oil shares and a stronger correlation between domestic output and oil price shocks all lead to stronger co-movements between risk premiums and the oil price. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2019/240 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/240/001.2019.issue-240-en.xml IMF e-Library