Rajan, Ramkishen S.; Li, Jie - In: Economia Internazionale / International Economics 59 (2006) 3, pp. 317-328
Apart from exchange rate objectives which have resulted in reserve accumulation as a side effect, Asian countries have chosen explicitly to build up reserves for precautionary motives. This paper explores the issue of optimal precautionary demand for reserves by a central bank within a context...