This blog was originally published on Illuminem, and has been co-authored with Rhian-Mari Thomas. She is the CEO...
Financing Climate & Sustainable Development / Report
Diagnosing how the sovereign ceiling functions as a simplifying shortcut that can obscure meaningful differences across borrowers, and proposing an alternative credit rating approach based on disaggregating sovereign risk into specific transmission channels.
This Perspective suggests that, to assess the competitiveness of a country’s firms, one needs not only to look at exports, but also the sales of their foreign affiliates (“establishment trade”). It exemplifies this for the China-US trade relationship. Taking such a holistic approach leads to a different picture, with a clear policy implication.
A translation in Mandarin is also available via the “Download Resources” button.
