Citation

Discussion Paper Details

Please find the details for DP9378 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Is the UK triple-A?

Author(s): Vito Polito and Michael R. Wickens

Publication Date: March 2013

Keyword(s): credit ratings and debt default

Programme Area(s): International Macroeconomics

Abstract: The immediate background to this paper is the downgrade of the U.K.'s credit rating in February 2013, the market's view that this should have occurred earlier and the emphasis in fiscal policy on reducing debt rather than recovery from recession. We propose a measure of the U.K. sovereign credit rating based on an open economy macroeconomic model that is simple to compute and easily automated. Whether based on an ad hoc debt-GDP limit or a DSGE model of an open economy, our measure downgrades the U.K.'s sovereign credit rating from the middle of 2008. From 2010 the rating improves and is nearly restored to triple-A by 2012.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9378

Bibliographic Reference

Polito, V and Wickens, M. 2013. 'Is the UK triple-A?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9378