LEADER 05366oam 22010214 450 001 9910788232503321 005 20230721045644.0 010 $a1-4623-3662-0 010 $a1-4527-7632-6 010 $a1-4518-7050-7 010 $a9786612841439 010 $a1-282-84143-2 035 $a(CKB)3170000000055084 035 $a(EBL)1607968 035 $a(SSID)ssj0000943972 035 $a(PQKBManifestationID)11559066 035 $a(PQKBTitleCode)TC0000943972 035 $a(PQKBWorkID)10978555 035 $a(PQKB)10170345 035 $a(OCoLC)467921269 035 $a(MiAaPQ)EBC1607968 035 $a(IMF)WPIEE2008192 035 $a(EXLCZ)993170000000055084 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aAre Emerging Asia?s Reserves Really Too High? /$fMarta Ruiz-Arranz, Milan Zavadjil 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (36 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/08/192 300 $aDescription based upon print version of record. 311 $a1-4519-1503-9 327 $aContents; I. Introduction; II. Developments in Reserve Adequacy Indicators; Tables; 1. Volatilities of Capital Flows in Asia-Pacific Economies; Box 1: Why Scale Reserves by Gross External Liabilities?; III. An Insurance Model of Optimal Reserves; 2. Output Loss in Asian Crisis; 3. Interest Rate Spreads; 4. Estimated Sterilization Financing Costs; 5. Foreign Reserves Levels: Optimal Vs. Actual; IV. A Threshold Model of Spreads-Reserves Elasticity; 6. Thresholds in the Spreads-Reserves Relations; V. Conclusions 327 $a7. Threshold Estimates of the Elasticity of EMBI Spreads with Respect to International Reserves Traditional Indicators 8. Threshold Estimates of the Elasticity of EMBI Spreads with Respect to International Reserves New Indicators; Figures; 1. Reserves in U.S. dollar, 1990-2007; 2. Reserves in percent of GDP, 1990-2007; 3. Reserves in months of exports of goods and services, 1990-2007; 4. Reserves in percent of short-term debt, 1990-2007; 5. Reserves in percent of gross external liabilities, 1990-2007; 6. Asia Emerging Markets: External Liabilities, 1990-2006 327 $a7. Reserves in percent of broad money, 1990-2007 8. Reserves to Financial System Deposits, Equities, and Bonds, 1990-2005; 9. The Optimal Level of International Reserves, 2007; 10. Optimal vs. Actual Levels of International Reserves in Asia; 11. The Optimal Level of International Reserves and Traditional Reserve Adequacy Indicators; 12. International Reserves and Threshold Estimates; Appendix; A.1. Variable Definitions and Sources; A.2. Summary Statistics; References 330 3 $aEmpirical analysis does not suggest that reserves are "too high" in the majority of Asian countries, though China may be a special case. Much of the reserve increase in Asia can be explained by an optimal insurance model under which reserves provide a steady source of liquidity to cushion the impact of a sudden stop in capital inflows on output and consumption. Moreover, the benefits of reserves in terms of reduced spreads on privately held external debt further explains the observed growth in reserves since 1997-98. Using threshold estimation techniques, the paper shows that most of Asia can still benefit from higher reserves in terms of reduced borrowing costs. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/192 606 $aForeign exchange administration$zAsia 606 $aForeign exchange$zAsia 606 $aCapital movements$zAsia 606 $aBanks and Banking$2imf 606 $aExports and Imports$2imf 606 $aInternational Investment$2imf 606 $aLong-term Capital Movements$2imf 606 $aMonetary Policy$2imf 606 $aInternational Lending and Debt Problems$2imf 606 $aInternational economics$2imf 606 $aBanking$2imf 606 $aCapital flows$2imf 606 $aSudden stops$2imf 606 $aExternal debt$2imf 606 $aReserves accumulation$2imf 606 $aInternational reserves$2imf 606 $aCapital movements$2imf 606 $aForeign exchange reserves$2imf 606 $aDebts, External$2imf 607 $aTaiwan Province of China$2imf 615 0$aForeign exchange administration 615 0$aForeign exchange 615 0$aCapital movements 615 7$aBanks and Banking 615 7$aExports and Imports 615 7$aInternational Investment 615 7$aLong-term Capital Movements 615 7$aMonetary Policy 615 7$aInternational Lending and Debt Problems 615 7$aInternational economics 615 7$aBanking 615 7$aCapital flows 615 7$aSudden stops 615 7$aExternal debt 615 7$aReserves accumulation 615 7$aInternational reserves 615 7$aCapital movements 615 7$aForeign exchange reserves 615 7$aDebts, External 676 $a332.456095 700 $aRuiz-Arranz$b Marta$01485163 701 $aZavadjil$b Milan$01485164 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788232503321 996 $aAre Emerging Asia?s Reserves Really Too High$93704154 997 $aUNINA