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An approach for minimizing risk through diversification of foreign exchange reserves and sovereign borrowings is proposed for central banks of small open economies. This approach--developed in a simple 2-period, 3-country framework--differs from past work in that the elements of exchange and...
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Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of … fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …
Persistent link: https://www.econbiz.de/10013243615
Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of … fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …
Persistent link: https://www.econbiz.de/10012469683
Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of … fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …
Persistent link: https://www.econbiz.de/10014115044