LEADER 05594oam 22007815 450 001 9910791045503321 005 20200520144314.0 010 $a1-4648-0213-0 024 8 $a10.1596/1813-9450-6793 035 $a(CKB)2550000001275464 035 $a(EBL)1678760 035 $a(SSID)ssj0001212775 035 $a(PQKBManifestationID)11659106 035 $a(PQKBTitleCode)TC0001212775 035 $a(PQKBWorkID)11210842 035 $a(PQKB)10882696 035 $a(Au-PeEL)EBL1678760 035 $a(CaPaEBR)ebr10856314 035 $a(CaONFJC)MIL597480 035 $a(OCoLC)878148186 035 $a(US-djbf)18217094 035 $a(The World Bank)6793 035 $a(MiAaPQ)EBC1678760 035 $a(US-djbf)6793 035 $a(EXLCZ)992550000001275464 100 $a20020129d2014 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt$2rdacontent 182 $cc$2rdamedia 183 $acr$2rdacarrier 200 10$aReserve Requirements in the Brave New Macroprudential World /$fCordella, Tito 210 1$aWashington, D.C.,$cThe World Bank,$d2014 215 $a1 online resource (48 pages) 225 0 $aA World Bank Study 300 $aDescription based upon print version of record. 311 $a1-4648-0212-2 311 $a1-306-66229-X 320 $aIncludes bibliographical references at the end of each chapters. 327 $aFront Cover; Contents; Preface; Acknowledgments; About the Authors; Abbreviations; Executive Summary; Chapter 1 Introduction; Chapter 2 Stylized Facts; Which Countries Have Used Reserve Requirements as a Macroeconomic Stabilization Tool?; Figures; Figure 2.1 Frequency of Changes in Reserve Requirements (1970-2011); What Have Been the Cyclical Properties of RR as a Macroeconomic Stabilization Tool?; Figure 2.2 Active versus Passive Reserve Requirement Policy (1970-2011); Figure 2.3 Frequency of Changes in Reserve Requirements (2005-11) 327 $aFigure 2.4 Cyclicality of Reserve Requirement Policy (1970-2011)Figure 2.5a Cyclicality of Reserve Requirement Policy (1970-2004); Figure 2.5b Cyclicality of Reserve Requirement Policy (2005-11); How Is RRP Related to the Credit Cycle?; Figure 2.6 Correlation of Private Credit with GDP (1970-2011); What Is the Relation between RRP and Monetary Policy?; Figure 2.7 Private Credit for Developing Countries (1970-2011); Figure 2.8 Cyclicality of RRP versus Private Credit (Active Countries, 1970-2011); Figure 2.9 Cyclicality of Interest Rate Policy (1970-2011) 327 $aFigure 2.10a Cyclicality of Interest Rate Policy (1970-2004) Figure 2.10b Cyclicality of Interest Rate Policy (2005-11); Tables; Table 2.1 Policy Mix Matrix (1970-2011); How Does Foreign Exchange Market Intervention Fit into the Picture?; Table 2.2a Policy Mix Matrix (1970-2004); Table 2.2b Policy Mix Matrix (2005-11); Figure 2.11 Cyclicality of International Reserves (1970-2011); Figure 2.12 Monetary versus Foreign Exchange Market Intervention Policy (1970-2011); Figure 2.13 RRP versus Foreign Exchange Market Intervention (1970-2011) 327 $aChapter 3 An Illustration of Policy Responses for Four Latin American Countries Figure 3.1 Policy Response to a Real GDP Shock (One Standard-Deviation Shock); Figure 3.2 Policy Response to a Nominal Exchange Rate Depreciation Shock; Boxes; Box 3.1 The Narrative Approach to Identification; Chapter 4 Policy Rationale; The Need for a Second Instrument; Figure 4.1 Cyclicality of Nominal Exchange Rates (1970-2011); Why Do RR Often Serve as the Second Instrument?; Figure 4.2 Monetary versus "Currency Defense" Policy (1970-2011); Which Country Characteristics Explain Different Policy Mixes? 327 $aFigure 4.3 Relative Effect of Reserve Requirement versus Monetary Policy Table 4.1 Currency Crises and Policy Mix; Table 4.2 Credit and Policy Mix; Table 4.3 Capital Account Openness and Policy Mix; Chapter 5 Microprudential Effects of Business Cycle Management; Box 5.1 Macroprudential Policy in Emerging Markets: The Cases of Brazil and Turkey; Tradeoffs over the Business Cycle; Chapter 6Policy Tensions and Tradeoffs; Chapter 7Policy Conclusions; Bibliography; Back Cover 330 3 $aUsing a new, large data set on quarterly reserve requirements for the period 1970-2011, this paper provides new evidence on the use of reserve requirements as a countercyclical macroprudential tool in developing countries. The appeal of reserve requirements lies in the pro-cyclical behavior of the exchange rate over the business cycle in developing countries. This enormously complicates the use of interest rates as a countercyclical instrument (because of its effect on the exchange rate) and calls for a second instrument. The paper suggests that conflicts may arise between the microprudential and macroprudential policy stances. 410 0$aPolicy research working papers. 410 0$aWorld Bank e-Library. 606 $aMoney supply 606 $aMonetary policy 606 $aCapital movements 606 $aForeign exchange rates 606 $aBusiness cycles 615 0$aMoney supply. 615 0$aMonetary policy. 615 0$aCapital movements. 615 0$aForeign exchange rates. 615 0$aBusiness cycles. 676 $a332.414 700 $aCordella$b Tito$0124211 702 $aCordella$b Tito 702 $aGeller$b Michael S. 702 $aPark$b Ji Won 801 0$bDJBF 801 1$bDJBF 906 $aBOOK 912 $a9910791045503321 996 $aReserve Requirements in the Brave New Macroprudential World$93804511 997 $aUNINA