01 Jul Impact of Sovereign Debt on Capital Markets

Alejandro Nikolaev Valchinov

Department of Politics, Economics and Global Affairs , IE University, Segovia, Spain

E-mail: anikolaev.ieu2023@student.ie.edu

Abstract

This study seeks to explain the impact of the debt-to-GDP ratio in the Spanish economy by performing a time-series regression. The results found are inclusive, highlighting that the debt-to-GDP ratio does not significantly impact the credit spreads for Spain. Nevertheless, future studies could consider additional relevant variables seeking to improve the explanation of the behaviour of the credit spreads.

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Keywords: Credit Spreads, Debt-to-GDP Ratio, Spain