International Reserves in Low Income Countries: Have they Served As Buffers?
January 1, 2012
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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.
Subject: Consumption, Foreign direct investment, Imports, International reserves, Terms of trade
Keywords: cost, economy, external shock, loss, reserve, WP
Pages:
36
Volume:
2012
DOI:
Issue:
007
Series:
Working Paper No. 2012/007
Stock No:
WPIEA2012007
ISBN:
9781463930561
ISSN:
1018-5941
