The Optimal Level of International Reserves for Emerging Market Countries : Formulas and Applications

Formulas and Applications

The Optimal Level of International Reserves for Emerging Market Countries : Formulas and Applications
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... READ MORE...

Publication date: October 2006
ISBN 9781451864892
$18.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats

Paperback

Publication date: October 2006

PDF

Publication date: October 2006

ePub

Publication date: October 2006

Mobi

Publication date: October 2006

English