Narrow search
Showing 1 - 10 of 767
Cover Image
Adjustment patterns to commodity terms of trade shocks: The role of exchange rate and international reserves policies
Aizenman, Joshua; Edwards, Sebastian; Riera-Crichton, Daniel - 2011
We analyze the way in which Latin American countries have adjusted to commodity terms of trade (CTOT) shocks in the 1970-2007 period. Specifically, we investigate the degree to which the active management of international reserves and exchange rates impacted the transmission of international...
Persistent link: https://www.econbiz.de/10010288117
Cover Image
Adjustment patterns to commodity terms of trade shocks : the role of exchange rate and international reserves policies
Aizenman, Joshua; Edwards, Sebastian; Riera-Crichton, Daniel - 2011
We analyze the way in which Latin American countries have adjusted to commodity terms of trade (CTOT) shocks in the 1970-2007 period. Specifically, we investigate the degree to which the active management of international reserves and exchange rates impacted the transmission of international...
Persistent link: https://www.econbiz.de/10009388370
Cover Image
Global liquidity glut or global savings glut? A structural VAR approach
Bracke, Thierry; Fidora, Michael - 2008
Since the late-1990s, the global economy is characterised by historically low risk premia and an unprecedented widening of external imbalances. This paper explores to what extent these two global trends can be understood as a reaction to three structural shocks in different regions of the global...
Persistent link: https://www.econbiz.de/10011604957
Cover Image
Global Liquidity Glut or Global Savings Glut? A Structural VAR Approach
Bracke, Thierry - 2008
Since the late-1990s, the global economy is characterised by historically low risk premia and an unprecedented widening of external imbalances. This paper explores to what extent these two global trends can be understood as a reaction to three structural shocks in different regions of the global...
Persistent link: https://www.econbiz.de/10012771616
Cover Image
Excess Reserves and Macroeconomic Instability
Scaramozzino, Pasquale - 2010
This paper is concerned with international reserves. It makes two main points. Firstly, excess reserves cannot be regarded as a substitute for sound fundamentals because the former may destabilize the economic system in the longer term. Secondly, reserve accumulation financed by public debt can...
Persistent link: https://www.econbiz.de/10013139882
Cover Image
The Optimal Level of International Reserves for Emerging Market Countries : Formulas and Applications
Jeanne, Olivier - 2006
stops in capital flows. Reserves allow the country to smooth domestic absorption in response to sudden stops, but yield a …
Persistent link: https://www.econbiz.de/10012779144
Cover Image
Sharp Reductions in Current Account Deficits : An Empirical Analysis
Milesi-Ferretti, Gian Maria - 2006
The paper studies determinants and consequences of sharp reductions in current account imbalances (reversals) in low- and middle-income countries. It poses two questions: what triggers reversals, and what factors explain how costly reversals are? It finds that both domestic variables, such as...
Persistent link: https://www.econbiz.de/10012781958
Cover Image
Optimal Reserves in Financially Closed Economies
Jeanne, Olivier - 2016
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
Cover Image
A Macroprudential Theory of Foreign Reserve Accumulation
Arce, Fernando; Bengui, Julien; Bianchi, Javier - 2022
and private international capital flows. In middle-income countries, the increase in international reserves has been … associated with elevated private capital inflows, both in the aggregate and in the cross-section, and reserve holdings have been … more prominent in economies with a more open capital account. We present an open economy model of financial crises that is …
Persistent link: https://www.econbiz.de/10013288795
Cover Image
Sudden stops and reserve accumulation in the presence of international liquidity risk
Lutz, Flora; Zessner-Spitzenberg, Leopold - 2020
We propose a small open economy model where agents borrow internationally and invest in liquid foreign assets to insure against liquidity shocks, which temporarily shut out the economy of short-term credit markets. Due to the presence of a pecuniary externality individual agents borrow too much...
Persistent link: https://www.econbiz.de/10012425195