Publication:
Credit Rating Agencies in Emerging Democracies : Guardians of Fiscal Discipline?

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dc.contributor.authorVaaler, Paul M.
dc.contributor.authorHanusch, Marek
dc.date.accessioned2013-04-12T16:55:50Z
dc.date.available2013-04-12T16:55:50Z
dc.date.issued2013-03
dc.description.abstractCredit rating agencies have drawn criticism for failing to anticipate and deter root causes of the 2008-2009 financial crisis in the United States. However, this paper presents evidence that credit rating agencies regularly anticipate and deter governments in emerging democracies from opportunistic borrowing and potential financial crises related to elections and the political budget cycle behavior they encourage. The paper considers a sample of 18 such countries holding 32 presidential elections from 1989 to 2004. The analysis shows that credit rating agencies induced greater fiscal discipline during election periods when governments had incentives to borrow opportunistically for short-term electoral gain. Countries with higher credit rating agency sovereign ratings borrowed less than lower-rated countries in election periods, but borrowed more in non-election periods. Credit rating agencies promoted fiscal discipline during increasingly frequent election periods in emerging democracies.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/03/17408765/credit-rating-agencies-emerging-democracies-guardians-fiscal-discipline
dc.identifier.doi10.1596/1813-9450-6379
dc.identifier.urihttps://hdl.handle.net/10986/13180
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6379
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCOUNTING
dc.subjectBOND ISSUANCES
dc.subjectBOND SPREADS
dc.subjectBORROWER
dc.subjectBUDGET BALANCE
dc.subjectBUDGET BALANCES
dc.subjectBUDGET CYCLE
dc.subjectBUDGET SURPLUSES
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS CYCLES
dc.subjectCENTRAL BANKS
dc.subjectCHECKS
dc.subjectCIVIL LIBERTIES
dc.subjectCREDIT HISTORIES
dc.subjectCREDIT RATING
dc.subjectCREDIT RATING AGENCIES
dc.subjectCREDIT RATING AGENCY
dc.subjectCREDITWORTHINESS
dc.subjectCURRENCY
dc.subjectCURRENCY CRISIS
dc.subjectDEBT
dc.subjectDEMOCRACY
dc.subjectDEPENDENT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDOMINANT PARTY
dc.subjectELECTION
dc.subjectELECTIONS
dc.subjectELECTORAL SYSTEM
dc.subjectELECTORAL SYSTEMS
dc.subjectEMERGING DEMOCRACIES
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL SERVICES
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL POLICY
dc.subjectFORBEARANCE
dc.subjectFUTURE CREDIT
dc.subjectGOVERNMENT BORROWING
dc.subjectGOVERNMENT BUDGET
dc.subjectGOVERNMENT FINANCES
dc.subjectHOLDING
dc.subjectINDIVIDUAL BOND
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINSTRUMENT
dc.subjectINTERNATIONAL AGREEMENTS
dc.subjectINTERNATIONAL BANK
dc.subjectINVESTMENT DECISIONS
dc.subjectLOCAL CURRENCY
dc.subjectMARKET PLAYERS
dc.subjectMARKET SHARES
dc.subjectMONETARY FUND
dc.subjectMORTGAGES
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPOLICY ENVIRONMENT
dc.subjectPOLITICAL BUSINESS CYCLE
dc.subjectPOLITICAL BUSINESS CYCLES
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL INSTITUTIONS
dc.subjectPOLITICAL PARTIES
dc.subjectPOLITICAL RIGHTS
dc.subjectPRESIDENTIAL ELECTIONS
dc.subjectREPUDIATION
dc.subjectRESERVES
dc.subjectSOVEREIGN BOND
dc.subjectSOVEREIGN RATING
dc.subjectSOVEREIGN RATINGS
dc.subjectSOVEREIGN RISK
dc.subjectUNEMPLOYMENT RATE
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.titleCredit Rating Agencies in Emerging Democracies : Guardians of Fiscal Discipline?en
dspace.entity.typePublication
okr.crossref.titleCredit Rating Agencies in Emerging Democracies: Guardians of Fiscal Discipline?
okr.date.disclosure2013-03-01
okr.date.doiregistration2025-04-10T10:05:07.908163Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/03/17408765/credit-rating-agencies-emerging-democracies-guardians-fiscal-discipline
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTrade and Competitiveness
okr.guid496021468150881073
okr.identifier.doi10.1596/1813-9450-6379
okr.identifier.externaldocumentum000158349_20130304152520
okr.identifier.internaldocumentum17408765
okr.identifier.reportWPS6379
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/03/04/000158349_20130304152520/Rendered/PDF/wps6379.pdfen
okr.region.geographicalAfrica
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicGovernance::Parliamentary Government
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicatione8191634-f6b7-4f49-928b-f42b51d2c37f
relation.isAuthorOfPublication.latestForDiscoverye8191634-f6b7-4f49-928b-f42b51d2c37f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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