To Err is Human: Rating Agencies and the Interwar Foreign Government Debt Crisis
46 Pages Posted: 6 Jun 2011
There are 2 versions of this paper
To Err is Human: Rating Agencies and the Interwar Foreign Government Debt Crisis
To Err is Human: Rating Agencies and the Interwar Foreign Government Debt Crisis
Date Written: December 2010
Abstract
During the 1930s, rating agencies took up a central role in regulatory supervision that they still have today. The proximate cause for this changeover was the economic shock of the Great Depression. Exploring the performance of rating agencies in assessing the risks of sovereign debt, an important segment of the bond market, we do not find that superior forecasting capacities can explain the agencies' growing importance.
Keywords: sovereign credit ratings, Great Depression, financial crisis, international bond markets
JEL Classification: E44, F34, G15, N20
Suggested Citation: Suggested Citation
Here is the Coronavirus
related research on SSRN
Recommended Papers
-
By Patrick Bolton, Xavier Freixas, ...
-
By Patrick Bolton, Xavier Freixas, ...
-
By Patrick Bolton, Xavier Freixas, ...
-
Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation
By Vasiliki Skreta and Laura Veldkamp
-
Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation
By Vasiliki Skreta and Laura Veldkamp
-
Credit Ratings as Coordination Mechanisms
By Arnoud W. A. Boot, Todd T. Milbourn, ...
-
How Did Increased Competition Affect Credit Ratings?
By Bo Becker and Todd T. Milbourn
-
How Did Increased Competition Affect Credit Ratings?
By Bo Becker and Todd T. Milbourn
