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Global commodity markets and sovereign risk across 150 years
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| Authors and Corporations: | , , |
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| Other Authors: | Garamow, Adelina [Author] • Meyer, Josefin [Author] |
| Type of Resource: | E-Book |
| Language: | English |
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| Series: |
Deutsches Institut für Wirtschaftsforschung: Discussion papers ; 2020
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| Subjects: | |
| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| Summary: | How do commodity price movements affect sovereign default risk over the long-run? Using a novel dataset covering 41 countries and 42 raw commodities, we take a comprehensive long-run view to shed light on this so far understudied relationship between commodity risk and sovereign risk across 150 years. We create a novel country-specific commodity price index that allows us to take advantage of countries’ variation in their commodity export compositions. Our results are twofold: first, commodity price fluctuations show a persistent association with sovereign borrowing costs for countries that are commodity export dependent across the last one and a half centuries. Second, historically this relationship was driven by agricultural price movements; today it is driven by mineral and energy price movements. |
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| Physical Description: | 1 Online-Ressource (circa 48 Seiten); Illustrationen |