{
  "title": "Optimal Reserves in the Eastern Caribbean Currency Union",
  "publication": "IMF Working Papers, April 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/optimal-reserves-in-the-eastern-caribbean-currency-union-22856",
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  "summary": "Recent turbulence in global and Caribbean regional financial markets underscore the importance of reassessing the adequacy of international reserves held by the Eastern Caribbean Central Bank (ECCB).",
  "authors": [
    "Wendell A. Samuel",
    "Emilio Pineda",
    "Mario Dehesa"
  ],
  "publishDate": "2009-04-01",
  "series": "IMF Working Papers",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Recent turbulence in global and Caribbean regional financial markets underscore the importance of reassessing the adequacy of international reserves held by the Eastern Caribbean Central Bank (ECCB).\n- Using the Jeanne (2007) optimization framework, this paper finds that international reserves held by the ECCB are generally adequate for a variety of external current account and capital account shocks.\n- However, the ECCB would be challenged in the event of moderate to severe deposit outflows."
    },
    {
      "heading": "Methodology",
      "content": "- Framework used: Jeanne (2007) optimization framework."
    },
    {
      "heading": "Findings",
      "content": "- International reserves held by the ECCB are generally adequate for a variety of external current account and capital account shocks.\n- The ECCB would be challenged by moderate to severe deposit outflows."
    },
    {
      "heading": "Policy implications / Recommendations",
      "content": "- Reassess adequacy of international reserves in light of recent global and regional financial market turbulence.\n- Account explicitly for the risk of moderate to severe deposit outflows when setting reserve targets.\n\n---\n\n Content in this bundle\n\n- wp0977\n  - wp0977 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0977 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/optimal-reserves-in-the-eastern-caribbean-currency-union-22856"
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    "Authors: Wendell A. Samuel, Emilio Pineda, Mario Dehesa",
    "Published: April 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451872248.001",
    "Recent turbulence in global and Caribbean regional financial markets underscore the importance of reassessing the adequacy of international reserves held by the Eastern Caribbean Central Bank (ECCB).",
    "Using the Jeanne (2007) optimization framework, this paper finds that international reserves held by the ECCB are generally adequate for a variety of external current account and capital account shocks.",
    "However, the ECCB would be challenged in the event of moderate to severe deposit outflows.",
    "Framework used: Jeanne (2007) optimization framework.",
    "International reserves held by the ECCB are generally adequate for a variety of external current account and capital account shocks.",
    "The ECCB would be challenged by moderate to severe deposit outflows.",
    "Reassess adequacy of international reserves in light of recent global and regional financial market turbulence.",
    "Account explicitly for the risk of moderate to severe deposit outflows when setting reserve targets.",
    "**_wp0977**"
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