Andreas Bergh
Universitetslektor
Trust Us to Repay: Social Trust, Long-Term Interest Rates, and Sovereign Credit Ratings
Författare
Summary, in English
This paper asks whether the sensitivity of market long-term interest rates and credit ratings is associated with cross-country differences in social trust. We note a number of theoretical mechanisms that suggest that macroeconomic shocks are more likely to be effectively dealt with in higher-trust societies. A set of panel estimates across middle- and high-income countries reveals that interest rates and credit ratings are substantially more sensitive to inflation and growth problems in low-trust countries. This finding sheds light on the differential market reactions to macroeconomic problems in seemingly comparable countries.
Avdelning/ar
- Nationalekonomiska institutionen
- Centrum för ekonomisk demografi
Publiceringsår
2021-05-06
Språk
Engelska
Publikation/Tidskrift/Serie
Journal of Money, Credit and Banking
Volym
53
Issue
5
Länkar
Dokumenttyp
Artikel i tidskrift
Förlag
Wiley-Blackwell
Ämne
- Economics
Nyckelord
- social trust
- credit ratings
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 1538-4616