The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

Are Emerging Asia's Reserves Really Too High?

Are Emerging Asia's Reserves Really Too High? by Marta Ruiz-Arranz
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
Empirical 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.
International Monetary Fund; August 2008
34 pages; ISBN 9781452776323
Read online, or download in secure EPUB or secure PDF format
Title: Are Emerging Asia's Reserves Really Too High?
Author: Marta Ruiz-Arranz; Milan Zavadjil