In the past several years, the ten new Central and Eastern European members ofthe European Union have enjoyed rapid growth but frequently alongside growing external imbalances. Economists have pointed to rising vulnerabilities, but markets compressed sovereign bond yields. This paper examines the evidence from the perspective of economists' vulnerability analysis and markets' pricing of sovereign bonds. It finds that spread are lower than can be explained by "fundamentals" and speculates on the causes andpermanence of this yield compression.
|Keywords:||EU, mednarodne ekonomske integracije, članstvo, trg kapitala, finančni trg, obveznice, ekonomisti, ekonomska rast, EU, international economic integrations, membership, capital market, financial market, bonds, economists, economic growth|
|Work type:||Statistics (i)|
|Organization:||EF - Faculty of Economics|
|Publisher:||International Monetary Fund|
|Number of pages:||31 str.|
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