American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Macroprudential Role of International Reserves
American Economic Review
vol. 106,
no. 5, May 2016
(pp. 570–73)
Abstract
There has been a lot of interest since the global financial crisis in policies allowing emerging market economies to smooth the effects of the global financial cycle. Although the literature has focused mostly on capital controls emerging market governments have relied mostly on international reserves management. This paper discusses the role of reserves in capital flow management based on a simple welfare-based model of capital flows with international banking frictions.Citation
Jeanne, Olivier. 2016. "The Macroprudential Role of International Reserves." American Economic Review, 106 (5): 570–73. DOI: 10.1257/aer.p20161013Additional Materials
JEL Classification
- E32 Business Fluctuations; Cycles
- E44 Financial Markets and the Macroeconomy
- E52 Monetary Policy
- F32 Current Account Adjustment; Short-Term Capital Movements
- F44 International Business Cycles
- O19 International Linkages to Development; Role of International Organizations
- O24 Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy