05029oam 22011414 450 991078823640332120230721045630.01-4623-3561-61-4527-3697-91-282-84100-91-4518-7007-89786612841002(CKB)3170000000055045(EBL)1607899(SSID)ssj0000944152(PQKBManifestationID)11597308(PQKBTitleCode)TC0000944152(PQKBWorkID)10982483(PQKB)10101856(OCoLC)762675555(MiAaPQ)EBC1607899(IMF)WPIEE2008149(EXLCZ)99317000000005504520020129d2008 uf 0engurcnu||||||||txtccrInternational Reserves and Self-Insurance against External Shocks /Régis BarnichonWashington, D.C. :International Monetary Fund,2008.1 online resource (23 p.)IMF Working PapersIMF working paper ;WP/08/149Description based upon print version of record.1-4519-1460-1 Includes bibliographical references.Contents; I. Introduction; II. Natural Disasters in the Caribbean and the Sahel; A. Hurricanes in the Caribbean; B. Droughts in the Sahel; III. A model of optimal international reserves; A. The model; B. An approximated closed-form solution for the reserves-to-imports ratio:; IV. Calibration and Numerical Solution; A. Self-insurance against natural disasters; B. Self-insurance against terms of trade shocks; C. Self-insurance against natural disasters and terms of trade shocks; V. Conclusion; References; Appendix 1. List of Countries in Each GroupThe views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper develops an analytical framework that helps to quantify the optimal level of international reserves for a small open economy with limited access to foreign capital and subject to natural disasters or terms of trade shocks. International reserves allow the country to relieve balance of payments pressures caused by external shocks and to avoid large fluctuations in imports. I calibrate the model to two regions, the Caribbean and the Sahel, and assess the sensitivity of the results.IMF Working Papers; Working Paper ;No. 2008/149Foreign exchangeEconometric modelsCapital movementsEconometric modelsForeign exchangeCaribbean AreaEconometric modelsCapital movementsCaribbean AreaEconometric modelsForeign exchangeSahelEconometric modelsCapital movementsSahelEconometric modelsBanks and BankingimfExports and ImportsimfNatural DisastersimfTrade: GeneralimfClimateimfNatural Disasters and Their ManagementimfGlobal WarmingimfEmpirical Studies of TradeimfMonetary PolicyimfInternational economicsimfNatural disastersimfBankingimfExportsimfImportsimfTerms of tradeimfInternational reservesimfEconomic policyimfnternational cooperationimfForeign exchange reservesimfGrenadaimfForeign exchangeEconometric models.Capital movementsEconometric models.Foreign exchangeEconometric models.Capital movementsEconometric models.Foreign exchangeEconometric models.Capital movementsEconometric models.Banks and BankingExports and ImportsNatural DisastersTrade: GeneralClimateNatural Disasters and Their ManagementGlobal WarmingEmpirical Studies of TradeMonetary PolicyInternational economicsNatural disastersBankingExportsImportsTerms of tradeInternational reservesEconomic policynternational cooperationForeign exchange reserves332.450724Barnichon Régis1485199DcWaIMFBOOK9910788236403321International Reserves and Self-Insurance against External Shocks3704193UNINA