03455nam 2200649 450 991046400700332120170821155855.01-4623-6690-21-4527-0267-51-4518-6957-61-282-84051-79786612840517(CKB)3170000000054995(EBL)1607825(SSID)ssj0000943964(PQKBManifestationID)11523999(PQKBTitleCode)TC0000943964(PQKBWorkID)10983189(PQKB)11180517(OCoLC)874176086(MiAaPQ)EBC1607825(EXLCZ)99317000000005499520140227h20082008 uy 0engur|n|---|||||txtccrAccumulating foreign reserves under floating exchange rates /Fernando M. GonçalvesStuttgart, Germany :W. Kohlhammer GmbH,2008.©20081 online resource (43 p.)IMF Working PapersIMF working paper ;WP/08/96Description based upon print version of record.1-4519-1411-3 Includes bibliographical references.Contents; 1. Introduction; 2. Theoretical Model: Basic Set-up; 3. Complete Information; 3.1. Centralization; 3.2. Institutional Arrangements in Practice; 3.3. Separation; 3.4. Centralization versus Separation; 4. Incomplete Information; 4.1. Stage 1: Centralization versus Separation; Figures; 1. Timetable; 4.2. Stage 0: Centralization versus Separation; 5. Comparative Analysis Under Incomplete Information; 5.1. Simulation of Stage 0 Parameters; 2. Simulation of Stage 0 Parameters; 5.2. The Trade-off Between Reserve Accumulation and Credibility Building; 5.3. Centralization versus Separation5.3.1. Macroeconomic Stability3. Macroeconomic Stability - Centralization versus Separation; 5.3.2. Reserve Targeting; 4. Reserve Targeting - Centralization versus Separation; 5.3.3. Discussion; 6. Concluding Remarks; References; Appendix; Proof of Proposition 1; Proof of Corollary 1Official accumulation of foreign reserves may be perceived as interventions to influence the exchange rate, undermining the credibility of floating exchange rates and inflation targets. This paper develops a theoretical framework to study the interaction between reserve accumulation and monetary policy. The model uncovers a trade-off between the speed of reserve accumulation and anti-inflationary credibility. Under reasonable assumptions, delegation of intervention and monetary policy decisions to separate government agencies allows faster reserve accumulation, while centralization of these deIMF Working PapersForeign exchange ratesEconometric modelsBank reservesEconometric modelsMonetary policyEconometric modelsElectronic books.Foreign exchange ratesEconometric models.Bank reservesEconometric models.Monetary policyEconometric models.332.456Gonçalves Fernando M862010MiAaPQMiAaPQMiAaPQBOOK9910464007003321Accumulating foreign reserves under floating exchange rates1924031UNINA