The Sovereign Spread Compressing Effect of Fiscal Rules during Global Crises (English)

The Sovereign Spread Compressing Effect of Fiscal Rules during Global Crises (English) Do fiscal rules help suppress sovereign spreads during periods of global financial stress? Yes! This paper examines whether fiscal rules contribute to mitigating sovereign spreads in emerging markets and developing economies during periods of heightened financial and economic volatility worldwide. It finds that the presence of fiscal rules is statistically significantly associated with lower sovereign spreads during the COVID-19 crisis —.. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099249103282432838/idu15cfa7f6d1d6ab1406518cfe157ccc6a3202a