05437oam 22014414 450 991081466510332120200520144314.01-4623-3365-61-4527-5316-41-283-36412-397866138235641-4519-0942-X(CKB)3360000000443352(EBL)3014405(SSID)ssj0001479868(PQKBManifestationID)11893771(PQKBTitleCode)TC0001479868(PQKBWorkID)11492097(PQKB)11627575(OCoLC)698585687(IMF)WPIEE2006229(MiAaPQ)EBC3014405(IMF)WPIEA2006229(EXLCZ)99336000000044335220020129d2006 uf 0engur|n|---|||||txtccrThe Optimal Level of International Reserves for Emerging Market Countries : Formulas and Applications /Romain Ranciere, Olivier Jeanne1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (35 p.)IMF Working Papers"October 2006".1-4518-6489-2 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. SUDDEN STOPS AND RESERVES: SOME FACTS""; ""III. THE MODEL""; ""IV. APPLICATIONS""; ""V. EXTENSIONS""; ""VI. CONCLUDING COMMENTS""; ""APPENDIX: COMPUTATIONS""; ""REFERENCES""We present a model of the optimal level of international reserves for a small open economy that is vulnerable to sudden stops in capital flows. Reserves allow the country to smooth domestic absorption in response to sudden stops, but yield a lower return than the interest rate on the country's long-term debt. We derive a formula for the optimal level of reserves, and show that plausible calibrations can explain reserves of the order of magnitude observed in many emerging market countries. However, the recent buildup of reserves in Asia seems in excess of what would be implied by an insurance motive against sudden stops.IMF Working Papers; Working Paper ;No. 2006/229Balance of paymentsForeign exchange administrationBalance of paymentsimfBankingimfBanks and BankingimfCapital movementsimfCentral banksimfConsumptionimfCurrencyimfCurrent Account AdjustmentimfDebts, ExternalimfEconomicsimfEmerging and frontier financial marketsimfExchange rate arrangementsimfExports and ImportsimfExternal debtimfFinanceimfFinance: GeneralimfFinancial marketsimfFinancial services industryimfForeign exchange reservesimfForeign ExchangeimfForeign exchangeimfGeneral Financial Markets: General (includes Measurement and Data)imfInternational economicsimfInternational InvestmentimfInternational Lending and Debt ProblemsimfLong-term Capital MovementsimfMacroeconomicsimfMacroeconomics: ConsumptionimfMonetary PolicyimfReserve positionsimfReserves accumulationimfSavingimfShort-term Capital MovementsimfSudden stopsimfWealthimfThailandimfBalance of payments.Foreign exchange administration.Balance of paymentsBankingBanks and BankingCapital movementsCentral banksConsumptionCurrencyCurrent Account AdjustmentDebts, ExternalEconomicsEmerging and frontier financial marketsExchange rate arrangementsExports and ImportsExternal debtFinanceFinance: GeneralFinancial marketsFinancial services industryForeign exchange reservesForeign ExchangeForeign exchangeGeneral Financial Markets: General (includes Measurement and Data)International economicsInternational InvestmentInternational Lending and Debt ProblemsLong-term Capital MovementsMacroeconomicsMacroeconomics: ConsumptionMonetary PolicyReserve positionsReserves accumulationSavingShort-term Capital MovementsSudden stopsWealthRanciere Romain1168798Jeanne Olivier125747DcWaIMFBOOK9910814665103321The Optimal Level of International Reserves for Emerging Market Countries4071924UNINA