Reserve Accumulation and International Monetary Stability
Policy Papers, April 13, 2010
Source details
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- Reserve Accumulation and International Monetary Stability
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Bibliographic details
- Published: April 13, 2010
- Series: Policy Papers
Summary and purpose
- Reviews the structure of the international monetary system (IMS)—the set of official arrangements that regulate key dimensions of balance of payments: international reserves, exchange rates, current payments, and capital flows.
- Motivated by repeated and costly international financial crises since the last comprehensive IMS reform discussion held "nearly four decades ago."
- Seeks to assess how the IMS can be strengthened and made more resilient given recent and prospective trends.
Major findings and diagnostics
- Identifies a confluence of forces:
- An unprecedented build-up in global current account imbalances.
- Volatile cross border capital flows.
- A sharp build-up of international reserves.
- Concentration of those reserves in a few reserve currencies facing new challenges in maintaining fiscal and financial stability.
- Highlights a tension characterized as "high reserve demand and narrow reserve supply."
- Notes that while the paper focuses on reserve demand–supply tension, it also touches on all IMS components: exchange rate arrangements, capital flows, and the global adjustment process.
- Signals that "pre-crisis trends appear set to resume," calling for examination of broader implications for stability and efficiency of the current system.
Scope and relation to broader Fund work
- Positions this paper in the broader context of the Fund’s recent work on IMS stability:
- Followed an earlier paper focused on exchange rate arrangements.
- Anticipates continuation with another paper on capital flows in coming months.
Subject areas covered
- Balance of payments
- Capital flows
- Exchange rates
- Financial stability
- Fiscal stability
- International monetary reform
- International monetary system
- Reserves
- Reserves accumulation
Publication and access notes
- Publication date: April 13, 2010.
- The IMF eLibrary offers over 25,000 IMF publications in multiple formats.
Source: Reserve Accumulation and International Monetary Stability — https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/reserve-accumulation-and-international-monetary-stability-pp4456
Content in this bundle
- Reserve Accumulation and International Monetary Stability; IMF Policy Papers; April 13, 2010