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Prolonged Reserves Accumulation, Credit Booms, Asset Prices and Monetary Policy in Asia

Filardo, Andrew J. - 2015

This paper examines past evidence of prolonged periods of foreign exchange reserves accumulation in the Asia-Pacific region. One empirical challenge is to identify periods of reserve accumulation that are sufficiently large and persistent to be categorised as prolonged. Several proxies for...

Persistent link: https://www.econbiz.de/10013023473

Growth, Liquidity Provision, International Reserves, and Sovereign Debt Capacity

Xu, Yu - 2015

I establish a theoretical framework to address three distinct, but interrelated puzzles in international economics: (1) the occurrence of twin crises, (2) the existence of large amounts of sovereign debt, and (3) the presence of substantial amounts of international reserves. By considering the...

Persistent link: https://www.econbiz.de/10013027906

Precautionary Demand for Foreign Assets in Sudden Stop Economies : An Assessment of the New Mercantilism

Durdu, Ceyhun Bora; Mendoza, Enrique G.; Terrones, Marco E. - 2007

Financial globalization had a rocky start in emerging economies hit by Sudden Stops. Foreign reserves have grown very rapidly since then, as if those countries were practicing a New Mercantilism that views foreign reserves as a war-chest for defense against Sudden Stops. This paper conducts a...

Persistent link: https://www.econbiz.de/10014221388

Macroeconomic imbalances in the United States and their impact on the international financial system

Perelstein, Julia S. - 2009

The argument put forward in this paper is twofold: first, that the financial crisis of 2007/08 was made global by the U.S. current account deficit. This is because the outflow of dollars from the United States was invested in U.S. capital markets, causing inflation in asset markets and leading...

Persistent link: https://www.econbiz.de/10010266462

Optimal exchange rate policy in a growing semi-open economy

Bacchetta, Philippe; Benhima, Kenza; Kalantzis, Yannick - 2013

In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy where the private sector has no access to international capital markets but the central bank has full access. Moreover, we assume limited financial development generating a large...

Persistent link: https://www.econbiz.de/10010200010

Capital Controls with International Reserve Accumulation : Can This Be Optimal?

Bacchetta, Philippe - 2012

Motivated by the Chinese experience, we analyze a semi-open economy where the central bank has access to international capital markets, but the private sector has not. This enables the central bank to choose an interest rate different from the international rate. We examine the optimal policy of...

Persistent link: https://www.econbiz.de/10013097636

The Determinants of the Demand for International Reserves in Mexico : A Vector Error Correction Model

Garza-Rodriguez, Jorge - 2016

The objective of this research was to identify the determinants of international reserves in Mexico. Using a Vector Error Correction Model, it was found that foreign portfolio investment has a significant positive effect on the demand for reserves both in the short run as in the long run. A...

Persistent link: https://www.econbiz.de/10013002565

Emerging markets interest rates, international reserves and net foreign assets

Bitar, Joseph; Boileau, Martin - In: Journal of globalization and development 12 (2021) 2, pp. 145-180

Persistent link: https://www.econbiz.de/10013262740

The financial trilemma in China and a comparative analysis with India

Aizenman, Joshua; Sengupta, Rajeswari - Volkswirtschaftliche Fakultät, … - 2011

, exchange rate stability and financial integration subject to the constraints imposed by the Trilemma, in an era of widespread … globalization. In this paper we overview and contrast the Trilemma policy choices and tradeoffs faced by the two key drivers of … global economic growth-China and India. China’s Trilemma configurations are unique relative to other emerging markets in the …

Persistent link: https://www.econbiz.de/10011261190

The financial trilemma in China and a comparative analysis with India

Aizenman, Joshua; Sengupta, Rajeswari - Volkswirtschaftliche Fakultät, … - 2011

, exchange rate stability and financial integration subject to the constraints imposed by the Trilemma, in the era of deepening … globalization. In this paper we study the Trilemma choices of the two key drivers of global growth, China and India. We overview and … contrast the policy choices of the two, and test their Trilemma choices and tradeoffs. China’s Trilemma configurations are …

Persistent link: https://www.econbiz.de/10009359933