Abstract
Chapter 6 is devoted to backtesting. Technically speaking, any ratings system should be scanned to gauge on its validity. Such a task is fulfilled by having recourse towards well established and internationally coveted metrics. Findings show that the developed central bank rankings approach befits with already established country indices such as Ease of Doing Business, human development level and the corruption level. Most importantly, strong evidence is found as to the ratings acting as a driver for sovereign ratings and ten-year CDS spreads. This adds lustre as to the newly developed ratings being useful for international authorities when assessing country risk.
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© 2016 Indranarain Ramlall
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Ramlall, I. (2016). Backtesting. In: Central Bank Ratings: A New Methodology for Global Excellence. Palgrave Pivot, London. https://doi.org/10.1057/9781137524010_6
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DOI: https://doi.org/10.1057/9781137524010_6
Publisher Name: Palgrave Pivot, London
Print ISBN: 978-1-349-70666-2
Online ISBN: 978-1-137-52401-0
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