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The share of U.S. dollar assets in the official foreign exchange reserve portfolios of central banks is sometimes taken as an indicator of dollar status. We show that the observed decline in the aggregate share of U.S. dollar assets does not stem from a systematic shift in currency preferences...
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Central banks in developing countries, wanting to devalue the domestic currency, usually intervene in the foreign exchange market by buying up foreign currency using domestic money-often backing this up with sterilization to counter inflationary pressures. Such interventions are usually...
Persistent link: https://www.econbiz.de/10003810222
Financially closed economies insure themselves against current-account shocks using international reserves. We characterize the optimal management of reserves using an open-economy model of precautionary savings and emphasize several results. First, the welfare-based opportunity cost of reserves...
Persistent link: https://www.econbiz.de/10012977747
explanatory power. Rather, we focus on the dynamics of growth following external exogenous shocks (natural disasters). We argue … of developing countries. -- Growth theory ; long run growth ; Solow ; disasters ; exogenous shocks …
Persistent link: https://www.econbiz.de/10003855329
comprehensive retrospective information on households’ historic experience with weather shocks. Exposure to the weather shock … significantly reduces the likelihood of being enrolled in mandatory school two to three years after the shock. Similarly, it … significantly reduces the probability of completing basic education ten to eleven years after the shock. Both effects are driven by …
Persistent link: https://www.econbiz.de/10011411244
shocks: large declines in the price of a country's commodity exports and severe natural disasters. Unsurprisingly, adverse … policies have large effects that are specific to particular types of shock. In particular, regulations which reduce the speed … are particularly ill-suited to mineral exporting economies. Natural disasters appear to be better accommodated by labour …
Persistent link: https://www.econbiz.de/10013150879
shocks: large declines in the price of a country’s commodity exports and severe natural disasters. Unsurprisingly, adverse … policies have large effects that are specific to particular types of shock. In particular, regulations which reduce the speed … are particularly ill-suited to mineral exporting economies. Natural disasters appear to be better accommodated by labour …
Persistent link: https://www.econbiz.de/10014204018