## Is SDR Creation Inflationary?

_Policy Papers, January 7, 2011_

## Source details

**Canonical URL:** [Is SDR Creation Inflationary?](https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/is-sdr-creation-inflationary-pp4524)

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- [Markdown version](/en/publications/policy-papers/issues/2016/12/31/is-sdr-creation-inflationary-pp4524/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2016/12/31/is-sdr-creation-inflationary-pp4524/index.json)
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## Bibliographic details
- Published: January 7, 2011
- Series: Policy Papers

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### Summary
- Publication date: January 7, 2011
- Core question: Whether allocating Special Drawing Rights (SDRs) more frequently and in significant amounts would be inflationary for the world economy.
- Approach: Explores five different “scenarios” describing how recipient countries and the leading central banks—most notably the U.S. Federal Reserve (FRB) and the EU’s European Central Bank (ECB)—would respond to those allocations.
- High-level conclusion: SDR issuance would be inflationary for the world economy under two of the scenarios, but not under the remaining three scenarios, which include the most likely ones.

### Scenarios and main findings
- Number of scenarios explored: five
- Central banks explicitly considered: FRB (U.S. Federal Reserve) and ECB (European Central Bank)
- Findings by scenario:
  - Inflationary outcome in: two scenarios
  - Non-inflationary outcome in: three scenarios (these three include the most likely responses)

### Themes and topics covered
- Allocation of SDRs
- Foreign exchange reserves
- Inflation
- Monetary policy
- Reserves
- SDRs

*Source: Is SDR Creation Inflationary?, International Monetary Fund, January 7, 2011*

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## Content in this bundle

- **Is SDR Creation Inflationary?**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/is-sdr-creation-inflationary-pp4524_