International Reserves in Low Income Countries: Have they Served As Buffers?

Publication Date:

January 1, 2012

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.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

Summary:

This paper provides a historical perspective on the role of international reserves in low-income countries as a cushion against large external shocks over the last three decades - including the current global crisis. The results suggest that international reserves have played a role in buffering external shocks, with the resulting macroeconomic costs varying with the nature of the shock, the economy's structural characteristics, and the level of reserves.

Series:

Working Paper No. 2012/007

Subject:

Consumption Foreign direct investment Imports International reserves Terms of trade

Frequency:

Quarterly

English

Publication Date:

January 1, 2012

ISBN/ISSN:

9781463930561/1018-5941

Stock No:

WPIEA2012007

Pages:

36

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