This study addresses how to consider environmental risk analysis (ERA) in the strategic asset allocation (SAA) of international reserves (IRs) managed by central banks (CBs). For that, a multicriteria analytical framework is proposed for the evaluation of the environmental risk exposure of an...

Purpose: This work presents a model of a two-period economy to discuss the link between the precautionary motivation for holding international reserves and the country's monetary policy concerns due to a crisis. Design/methodology/approach: There are two possible states of nature in the second...