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International Reserves and Self-Insurance against External Shocks / Régis Barnichon.

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Format:
Book
Government document
Author/Creator:
Barnichon, Régis.
Series:
IMF Working Papers; Working Paper ; No. 2008/149
IMF working paper ; WP/08/149
IMF Working Papers
Language:
English
Subjects (All):
Foreign exchange--Econometric models.
Foreign exchange.
Capital movements--Econometric models.
Capital movements.
Foreign exchange--Caribbean Area--Econometric models.
Capital movements--Caribbean Area--Econometric models.
Foreign exchange--Sahel--Econometric models.
Capital movements--Sahel--Econometric models.
Physical Description:
1 online resource (23 p.)
Edition:
1st ed.
Place of Publication:
Washington, D.C. : International Monetary Fund, 2008.
Language Note:
English
Summary:
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper develops an analytical framework that helps to quantify the optimal level of international reserves for a small open economy with limited access to foreign capital and subject to natural disasters or terms of trade shocks. International reserves allow the country to relieve balance of payments pressures caused by external shocks and to avoid large fluctuations in imports. I calibrate the model to two regions, the Caribbean and the Sahel, and assess the sensitivity of the results.
Contents:
Contents; I. Introduction; II. Natural Disasters in the Caribbean and the Sahel; A. Hurricanes in the Caribbean; B. Droughts in the Sahel; III. A model of optimal international reserves; A. The model; B. An approximated closed-form solution for the reserves-to-imports ratio:; IV. Calibration and Numerical Solution; A. Self-insurance against natural disasters; B. Self-insurance against terms of trade shocks; C. Self-insurance against natural disasters and terms of trade shocks; V. Conclusion; References; Appendix 1. List of Countries in Each Group
Notes:
Description based upon print version of record.
Includes bibliographical references.
Description based on online resource; title from PDF front page (ebrary, viewed February 26, 2014).
ISBN:
9786612841002
9781462335619
1462335616
9781452736976
1452736979
9781282841000
1282841009
9781451870077
1451870078
OCLC:
762675555

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