[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-32155":3,"doc-seo-32155":28},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"file_id":15,"file_url":16,"file_type":17,"file_size":18,"view_count":19,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"table_of_contents":24,"faqs":25,"seo_title":13,"seo_description":14,"update_tm":26,"read_time":27},32155,1649267921044,"Ava Thompson","https://us-avatar.wpscdn.com/avatar/1800007509477c92dfb?_k=1779183583414876462",8,"Research & Report","Monetary Policy and Sovereign Risk in Emerging Economies","Develops a New Keynesian framework featuring sovereign default risk. Inflation is governed by forward-looking firms, monetary policy follows an interest-rate rule, and an external borrowing fiscal government can default on long-term debt. Default risk generates inflation pressures through an expectations channel, while tighter monetary policy discourages fiscal overborrowing. The model interprets emerging-market inflation episodes—short-lived spikes in inflation, spreads, and policy rates—showing how spread increases raise firms’ price setting and consumption falls during default. Monetary-fiscal interactions suggest flexible prices may be suboptimal for monetary policy.","cbCaialyHp55rkBs","https://ap.wps.com/l/cbCaialyHp55rkBs","pdf",1631518,10,1,92,"English","en","# Introduction\n## Motivation and empirical pattern\n## Model contribution and key findings","[{\"question\":\"What core mechanism links sovereign default risk to inflation in the paper?\",\"answer\":\"Default risk creates inflation pressures through an expectations channel, raising firms’ price-setting behavior when sovereign spreads increase.\"},{\"question\":\"How does the model describe monetary policy and fiscal borrowing?\",\"answer\":\"Monetary policy follows an interest-rate rule, while the fiscal government borrows externally on long-term debt with an option to default.\"},{\"question\":\"What empirical patterns in emerging markets does the paper aim to explain?\",\"answer\":\"Inflation comoves positively with sovereign risk during episodes, with temporary inflation spikes, rising spreads, and central banks increasing nominal rates, typically reverting within about a year.\"}]",1780952460,232,{"code":4,"msg":29,"data":30},"ok",{"site_id":31,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":26},105,"monetary-policy-and-sovereign-risk-in-emerging-economies","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/monetary-policy-and-sovereign-risk-in-emerging-economies/32155/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-06-14","2026-06-08",true,{"@type":65,"interactionType":66,"userInteractionCount":19},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What core mechanism links sovereign default risk to inflation in the paper?","Question",{"text":75,"@type":76},"Default risk creates inflation pressures through an expectations channel, raising firms’ price-setting behavior when sovereign spreads increase.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"How does the model describe monetary policy and fiscal borrowing?",{"text":80,"@type":76},"Monetary policy follows an interest-rate rule, while the fiscal government borrows externally on long-term debt with an option to default.",{"name":82,"@type":73,"acceptedAnswer":83},"What empirical patterns in emerging markets does the paper aim to explain?",{"text":84,"@type":76},"Inflation comoves positively with sovereign risk during episodes, with temporary inflation spikes, rising spreads, and central banks increasing nominal rates, typically reverting within about a year.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":31}]