Assessing Reserve Adequacy : Further Considerations / International Monetary Fund.

Format:

Book

Author/Creator:

International Monetary Fund, author, issuing body.

Series:

Policy Papers ; Volume 2013: Issue 091

Language:

English

Subjects (All):

Monetary policy.

International finance.

Physical Description:

1 online resource (30 pages).

Other Title:

Assessing Reserve Adequacy

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Contents:

INTRODUCTIOn

PART I: RESERVES AND BUFFERS: THEIR ROLE AND USE

I. What Role Do Reserves Play?

II. Intervention: Effectiveness and Modalities

PART II. ASSESSING THE ADEQUACY AND THE COST OF RESERVES

I. Do Mature Markets and Flexible Economies Need Reserves?

II. Refining Advice for Economies with Less-Mature Markets

III. Cost of Reserves-Considerations for Market Access Countries

IV. Revisiting Reserve Adequacy for Credit Constrained and Low Income Economies

V. Dollarized Economies and Currency Unions

CONCLUSIONS

ISSUES FOR DISCUSSION

BOXES

1. Episodes of FX Swap Market Dysfunction

2. Reserve Use During the Global Financial Crisis: Sweden and Australia

3. Market Dysfunction and Systemic Banking Crises

4. The EM ARA Metric

5. Modeling the opportunity cost of holding reserves: Marginal Productivity of Capital

6. Dollarized LICs

FIGURES

1. Exchange Market Liquidity in Selected Markets

2. Reserves, Vulnerabilities, and Policies and Crisis Probabilities

3. Allocation and Access in U.S. Dollar Swap Lines

4. Implications from the Estimated Policy Rules

5a. Decomposition of Exchange Market Pressure (EM Average)

5b. Decomposition of Exchange Market Pressure

6. Implied U.S. Dollar FX Swap Rate and Risk Premium in the Market

7. Periods of Market Dysfunction

8. Determining Reserve Needs

9. Reserves in Percent of the ARA Metric, 2007 and 2012

10. Estimated Coefficients of ARA Metrics

11. Reserve Loss and Risk Factors

12. A Decomposition of Other Liabilities

13. Equity and Debt Liabilities Changes during EMP Events

14. Volatility of Capital Flows and Reserve Adequacy Metric

15. Opportunity Cost of Holding Reserves pre-, during, and post-GFC

16. LICs: Illustrative Calibration of Adequate Level of Reserves for LICs

17. Potential External Drains in Dollarized Economies

18. Reserves Adequacy and Dollarization

TABLES

1. Reserves Movements During Currency Appreciation / Depreciation

2. Countries Above Relevant Adequacy Threshold

3. 10th Percentile of Loss in ARA Metric Component, by Exchange Rate Regime

4. Regression of Real Oil Imports on Macro Variables, 1980-2013

5. Results from Reserve Demand Regressions

References.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781498381574

149838157X