MOSCOW (Sputnik) — Absolute monarchies, on average, have a higher score in fiscal and external risk assessment than constitutional monarchies, owing to strong government balance sheets, Standard & Poor's (S&P) Ratings Services said Wednesday.
"Absolute monarchies score higher than constitutional monarchies in external risk and fiscal risk, largely reflecting the strong general government balance sheets and high external asset positions of wealthy monarchies in the eastern Arab world (with the exception of Bahrain and Jordan)," according to a report entitled "Are Monarchies More Creditworthy Than Other Types Of Sovereigns?"
Are #monarchies more creditworthy than other types of sovereigns? Read the full report: http://t.co/6NbzoFVkBH
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Constitutional monarchies, however, have higher credit ratings, an indication of "the effectiveness, stability, and predictability of a sovereign's policymaking and political institutions," the research claimed.
Differences reveal that absolute monarchies have more rigid exchange rates and limited monetary flexibility which is reflected in the balance sheets, the research outlined.
