Financial Versus Monetary Mercantilism : Long-Run View of Large International Reserves Hoarding / Jaewoo Lee, Joshua Aizenman.

Format:

Book

Government document

Author/Creator:

Lee, Jaewoo.

Contributor:

Aizenman, Joshua.

National Bureau of Economic Research.

Series:

IMF Working Papers; Working Paper ; No. 2006/280

IMF Working Papers

Language:

English

Subjects (All):

Mercantile system--East Asia--Mathematical models.

Mercantile system.

Balance of trade--East Asia.

Balance of trade.

Physical Description:

1 online resource (24 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

The sizable hoarding of international reserves by several East Asian countries has been frequently attributed to a modern version of monetary mercantilism-hoarding international reserves in order to improve competitiveness. From a long-run perspective, manufacturing exporters in East Asia adopted financial mercantilism-subsidizing the cost of capital- during decades of high growth. They switched to hoarding large international reserves when growth faltered, making it harder to disentangle the monetary mercantilism from a precautionary response to the heritage of past financial mercantilism. Monetary mercantilism also lowers the cost of hoarding through its short-term boost to external competitiveness, but may be associated with negative externalities leading to competitive hoarding.

Contents:

""Contents""; ""I. OVERVIEW""; ""II. FINANCIAL VERSUS MONETARY MERCANTILISM OVER THE DECADES: 1970� 2005""; ""III. THE HAZARD OF COMPETITIVE HOARDING""; ""IV. BANK FRAGILITY: ON THE OBSERVATION EQUIVALENCE OF MONETARY MERCANTILISM AND SELF- INSURANCE""; ""V. CONCLUSION""; ""REFERENCES""

Notes:

"December 2006."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613822512

9781462371990

146237199X

9781452789484

1452789487

9781282565180

1282565184

9781451909937

1451909934

OCLC:

698585538