Natural Disasters, Climate Change, and Sovereign Risk
Abstract: Unexpected shocks may tip countries with elevated fiscal vulnerabilities into default. The literature has emphasized the role of macroeconomic and financial shocks, such as a decline of commodity prices (Reinhart et al., 2016) or banking crises (Baltenau and Erce, 2018) in shaping sovereign risk.
File(s): File format is text/html https://www.federalreserve.gov//econres/notes/feds-notes/natural-disasters-climate-change-and-sovereign-risk-20201218.htm
Part of Series: FEDS Notes
Publication Date: 2020-12-18