Emerging Markets and Sovereign Risk

David E. Allen, University of South Australia, AustraliaAstrid Ayala, Universidad Francisco Marroquín, GuatemalaBanita Bissoondoyal-Bheenick, Monash University, AustraliaRobert Brooks, Monash University, AustraliaSzabolcs Blazsek, Universidad Francisco Marroquín, GuatemalaMarie Cavanaugh, Standard & Poor's, USADavid Chaikin, University of Sydney Business School, AustraliaJohn Chambers, Standard & Poor's, USASerge Darolles, Université Paris Dauphine, FranceJérémy Dudek, Université Paris Dauphine, FranceAnna Fisher, BAEconomics Pty Ltd., AustraliaBrian Fisher, BAEconomics Pty Ltd., AustraliaAnna Golab, Edith Cowan University, AustraliaRaúl González de Paz, Central Bank of Guatemala, GuatemalaSean Hinton, Terbish Partners, ChinaGaëlle Le Fol, Université Paris Dauphine, FranceMax McGraw, Sovereign Group, USAJeffrey Manns, George Washington University, USAR McFall Lamm, Jr, Stelac Advisory Services LLC, USALebogang Mateane, Schwartz Center for Economic Policy Analysis, USAMauro Megliani, Catholic University of Milan, ItalyAlbert Metz, Moody's Investors Service, USARobert Powell, Edith Cowan University, AustraliaWilli Semmler, The New School, USAPrakash Kumar Shrestha, Nepal Rastra Bank, Kathmandu, NepalDr. Lúcio Vinhas de Souza, Moody's Investor Services, USA

• PART I: RISK AND EMERGING MARKET INVESTMENT 1. Economic Growth Vs. Equity Returns in Emerging Markets; R. McFall Lamm 2. Default Risk of Sovereign Debt in Central America; Astrid Ayala, Szabolcs Blazsek, Raúl B. González 3. Contagion in Emerging Markets ; Serge Darolles, Jérémy Dudek and Gaëlle Le Fol 4. Aspects of Volatility and Correlations in European Emerging Economies ; A. Golab, D.E. Allen and R. Powell 5. The Political Risk of Offshore Financial Centres: The Cyprus Bail-Out; David Chaikin PART II: RATING AGENCIES AND THE SOVEREIGN RATING PROCESS 6. Travels in the Ratings Space: Developed and Developing Countries Sovereign Ratings; Lúcio Vinhas de Souza 7. The Sovereign Rating Regulatory Dilemma; Jeffrey Manns 8. A Framework for Understanding the Acceptability of Rating Agency Methodologies; Nigel Finch 9. Sovereign Wealth Funds and Investment Law; Mauro Megliani 10. Common Characteristics of Rated Sovereigns Prior to Default; Marie Cavanaugh, John B Chambers and Maximillian McGraw PART III: MANAGEMENT OF SOVEREIGN RISK AND RATINGS 11. Big Projects in Small Economies: The Determinants of Sovereign Risk and its Control; Sean J. Hinton, Brian S. Fisher and Anna M. Fisher 12. Monetary Policy and International Reserves in Emerging Economies: Theory and Empirics; Prakash Kumar Shrestha and Willi Semmler 13. Stock Market Impact of Sovereign Rating Changes: Alternative Benchmark Models; Emawtee Bissoondoyal-Bheenick and Robert Brooks 14. Reserve Adequacy Measures for Emerging Market Economies; Willi Semmler and Lebogang Mateane 15. The Price Impact of Sovereign Rating Announcements; Albert Metz