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Federal Reserve Bank of Minneapolis: 'Monetary Policy and Sovereign Risk in Emerging Economies'
January 24, 2026
MINNEAPOLIS, Minnesota, Jan. 24 (TNSLrpt) -- The Federal Reserve Bank of Minneapolis issued the following Economic Research report (No. 592) on Jan. 14, 2026 by Cristina Arellano, Yan Bai and Gabriel Mihalache entitled "Monetary Policy and Sovereign Risk in Emerging Economies (NK-Default)."

Here is the abstract:

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This paper develops a New Keynesian model with sovereign default risk. Inflation is set by forward-looking firms, monetary policy i . . .

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