(WP4/2014) Policy Strategy Towards Achieving Investment Grade Status for Emerging Economies
The paper discusses a possible policy strategy towards achieving an investment grade status for emerging economies. Through the use of an econometric model, it determines which among the macroeconomic variables considered by Credit Rating Agencies (CRAs) impacts speculative and investment grade economies. More importantly, it ranks these macroeconomic determinants according to its largest effect on the probability of achieving an investment grade status. This vital information will aid policymakers in identifying target areas where government efforts and resources should be focused.
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