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Rating politics : sovereign credit ratings and democratic choice in prosperous developed countries / Zsófia Barta and Alison Johnston.

Oxford Scholarship Online: Political Science Available online

View online
Format:
Book
Author/Creator:
Barta, Zsófia, author.
Johnston, Alison, 1982- author.
Series:
Oxford scholarship online.
Oxford scholarship online
Language:
English
Subjects (All):
Credit ratings--Political aspects.
Credit ratings.
Policy sciences--Economic aspects.
Policy sciences.
Finance, Public.
Physical Description:
1 online resource (244 pages)
Place of Publication:
Oxford : Oxford University Press, 2023.
Summary:
This work explores how countries' political and policy choices affect the credit ratings that they receive. The authors use statistical analysis of ratings, interviews with sovereign rating analysts, and a close reading of official communications of rating agencies to show that ratings penalise centre-left governments and policies.
Contents:
Intro
cover
titlepage
copyright
dedication
Contents
List of tables and figures
Acknowledgments
Abbreviations
1 The puzzle: how do sovereign ratings react to politics and policy?
Why sovereign ratings matter for prosperous developed countries
Public consequences, private motives
Minding their own business: why politics and policy matter for ratings
The empirical material
Contributions and the plan of the book
2 The business: why do ratings incorporate politics and policy?
Down the rabbit hole: the counterintuitive world of credit ratings
Third-party experts, not information brokers
He who pays the piper does not call the tune: the audience does
Not ``accurate,'' just workable: the overriding importance of rating stability and reliability
Sovereign ratings: the Achilles heel of the rating business
The role of sovereign ratings in the rating portfolio
Modeling sovereign risk
The bane of market reflexivity and the need for insurance
How to insure sovereign ratings against crises? Enter policy and politics
Policy as the transmission mechanism from shock to crisis: evidence from sovereign methodologies
The technical is political: how ``duty of care'' breeds political and policy interference
What role for ideas in a knowledge industry?
Studying ratings in action: the empirical evidence
3 The score: how do ratings correlate with politics and policy?
Hypotheses: how exactly might policy and politics matter for ratings?
Monetary flexibility
Expenditure flexibility
Revenue flexibility
Governance effectiveness
Interrogating rating scores: the empirical strategy
The dependent variable
The explanatory variables: spending and taxation structures, political institutions, and partisanship
The regression model.
Penalties and rewards on politics and policy in ratings: the findings
Spending and taxation
Political and institutional variables
The logic of insurance or neoliberal orthodoxy?
Market mimicry? Comparing the approach to politics and policy in ratings and bond spreads
The bond spread model
Bond spread results
Not aligned
Reasonable suspicion
4 The frame: how do rating analysts rationalize their approach to politics and policy?
Policy analysis done differently: the professional and epistemic affinities of rating analysts
Revolving doors and the niche
The science of credit
The art of futurology
``The ethos of getting it right''
Independent in every respect?
Resilience and credibility: how analysts assess politics and policy
Shrouded in complexity
Points of agreement: debt-bearing capacity and resilience
Lost in contextualization
Subjective and suggestible
The art of squaring circles
Appendix: Interview methods
Sample frame
Response rate and type
Format and length, recording method, and transcripts
5 The narrative: how rating reports explain specific rating decisions in Denmark, Germany, Italy, and the United Kingdom
Methodological considerations
Policy flexibility in action: how reports discuss specific policy features
Entitlements
Social services
Taxation
The rules and the exceptions
Decisiveness, mainstream convergence, and consensus: politics in rating reports
Checks and balances
Partisanship
Commitment is the name of the game
Political-economic models and the holy grail of reform
In search of a leitmotif
Why is reform so important?
Reform as a yardstick
The pieces fall into place
6 The upshot: ratings as a neglected force in global governance
Does it work?
Does it have to be this way?.
Sovereign ratings as an enduring force in global governance
Bibliography
Index.
Notes:
Also issued in print: 2023.
Includes bibliographical references and index.
Description based on online resource; title from PDF title page (viewed on May 22, 2023).
Other Format:
Print version: Barta, Zsófia Rating Politics
ISBN:
0-19-198856-1
0-19-887818-4
0-19-887819-2
OCLC:
1376195736

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