{
  "title": "International Reserves and Self-Insurance against External Shocks",
  "publication": "IMF Working Papers, June 1, 2008",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- This Working Paper develops an analytical framework to quantify the optimal level of international reserves for a small open economy with limited access to foreign capital and subject to natural disasters or terms of trade shocks.\n- International reserves are modeled as a tool to relieve balance of payments pressures caused by external shocks and to avoid large fluctuations in imports.\n- The model is calibrated to two regions: the Caribbean and the Sahel, and the sensitivity of the results is assessed."
    },
    {
      "heading": "Analytical framework and scope",
      "content": "- Focus: small open economy with limited access to foreign capital.\n- Shocks considered: natural disasters and terms of trade shocks.\n- Objective: quantify optimal international reserves for self-insurance against external shocks.\n- Mechanism highlighted: reserves smooth balance of payments adjustments and stabilize import flows."
    },
    {
      "heading": "Calibration and empirical assessment",
      "content": "- Regions calibrated: the Caribbean and the Sahel.\n- Assessment: sensitivity analysis of model results to alternative assumptions (details of sensitivity scenarios are developed in the paper)."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Exports, Imports, International reserves, Natural disasters, Terms of trade\n- Keywords: foreign exchange, opportunity cost, WP"
    },
    {
      "heading": "Usage and access",
      "content": "- Format availability: PDF and more formats on IMF eLibrary.\n- Additional services: IMF eLibrary (over 25,000 IMF publications), IMF Publications Newsletter.\n\nInternational Reserves and Self-Insurance against External Shocks — IMF Working Paper No. 2008/149\n\n---\n\n Content in this bundle\n\n- wp08149\n  - wp08149 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08149 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/international-reserves-and-self-insurance-against-external-shocks-22001"
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    "Authors: Régis Barnichon",
    "Published: June 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870077.001",
    "This Working Paper develops an analytical framework to quantify the optimal level of international reserves for a small open economy with limited access to foreign capital and subject to natural disasters or terms of trade shocks.",
    "International reserves are modeled as a tool to relieve balance of payments pressures caused by external shocks and to avoid large fluctuations in imports.",
    "The model is calibrated to two regions: the Caribbean and the Sahel, and the sensitivity of the results is assessed.",
    "Focus: small open economy with limited access to foreign capital.",
    "Shocks considered: natural disasters and terms of trade shocks.",
    "Objective: quantify optimal international reserves for self-insurance against external shocks.",
    "Mechanism highlighted: reserves smooth balance of payments adjustments and stabilize import flows.",
    "Regions calibrated: the Caribbean and the Sahel.",
    "Assessment: sensitivity analysis of model results to alternative assumptions (details of sensitivity scenarios are developed in the paper).",
    "Subject: Exports, Imports, International reserves, Natural disasters, Terms of trade",
    "Keywords: foreign exchange, opportunity cost, WP",
    "Format availability: PDF and more formats on IMF eLibrary.",
    "Additional services: IMF eLibrary (over 25,000 IMF publications), IMF Publications Newsletter.",
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