Series: IMF Working Papers
Author(s): Thomas McGregor
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 08 November 2019
Keywords: Market interest rates, Economic conditions, Financial crises, Real interest rates, Commodity price fluctuations, Risk premium, natural resources, sovereign debt, and default, development
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 s...