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A Fiscal Price Tag for International Reserves Author info | Abstract | Publisher info | Download info | Related research | Statistics David Hauner
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This paper examines the (quasi-)fiscal impact of the (opportunity) cost of international reserves. It proposes a conceptual framework, with particular emphasis on two hitherto somewhat neglected aspects: a more appropriate measure of gross opportunity cost, and potential savings from lower external debt spreads that countries "buy" by holding reserves. The framework is then applied to 100 countries over 1990-2004. The results suggest that a turning point has been reached in recent years: while most countries made money on their reserves during 1990-2001, most have been losing money during 2002-04.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
05/81.
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Length: 29 pages
Date of creation: 29 Apr 2005Date of revision:
Handle: RePEc:imf:imfwpa:05/81Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Reserves ; External debt ; Other versions of this item:
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Robert P. Flood & Nancy Peregrim Marion, 2002.
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Ben-Bassat, Avraham & Gottlieb, Daniel, 1992.
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The Review of Economics and Statistics ,
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Jaewoo Lee, 2004.
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Kletzer, Kenneth & Spiegel, Mark M., 2004.
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Other versions: Darrell Duffie & Lasse Heje Pedersen & Kenneth J. Singleton, 2003.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
David Hauner & Manmohan S. Kumar, 2006.
"Fiscal Policy and Interest Rates--How Sustainable Is the "New Economy"? ,"
IMF Working Papers
06/112, International Monetary Fund.
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Paulo Flavio Nacif Drummond, 2007.
"Implications of Oil Inflows for Savings and Reserve Management in the CEMAC ,"
IMF Working Papers
07/243, International Monetary Fund.
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Rodrik, Dani, 2006.
"The Social Cost of Foreign Exchange Reserves ,"
CEPR Discussion Papers
5483, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Dani Rodrik, 2006.
"The Social Cost of Foreign Exchange Reserves ,"
Working Papers
id:357, esocialsciences.com.
[Downloadable!] Dani Rodrik, 2006.
"The Social Cost of Foreign Exchange Reserves ,"
NBER Working Papers
11952, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Dani Rodrik, 2006.
"The social cost of foreign exchange reserves ,"
International Economic Journal ,
Korean International Economic Association, vol. 20(3), pages 253-266, September.
[Downloadable!] (restricted) Jurgen Von Hagen & Iulia Siedschlag, 2008.
"Managing Capital Flows: Experiences from Central and Eastern Europe ,"
Papers
WP234, Economic and Social Research Institute (ESRI).
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David Hauner & Manmohan S. Kumar, 2005.
"Financial Globalization and Fiscal Perfomance in Emerging Markets ,"
IMF Working Papers
05/212, International Monetary Fund.
[Downloadable!]
Daria Zakharova, 2008.
"One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows ,"
IMF Working Papers
08/269, International Monetary Fund.
[Downloadable!]
Marta Ruiz-Arranz & Milan Zavadjil, 2008.
"Are Emerging Asia’s Reserves Really Too High? ,"
IMF Working Papers
08/192, International Monetary Fund.
[Downloadable!]
Joshua Aizenman, 2006.
"International Reserves Management and the Current Account ,"
NBER Working Papers
12734, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Jeanne, Olivier & Rancière, Romain, 2008.
"The Optimal Level of International Reserves For Emerging Market Countries: A New Formula and Some Applications ,"
CEPR Discussion Papers
6723, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Andrea M. Maechler & Bas Berend Bakker & Christoph Duenwald & Piritta Sorsa & Andrew Tiffin, 2007.
"Vulnerabilities in Emerging Southeastern Europe--How Much Cause for Concern? ,"
IMF Working Papers
07/236, International Monetary Fund.
[Downloadable!]
Romain Ranciere & Olivier Jeanne, 2006.
"The Optimal Level of International Reserves for Emerging Market Countries: Formulas and Applications ,"
IMF Working Papers
06/229, International Monetary Fund.
[Downloadable!]
Edwin M. Truman, 2005.
"Postponing Global Adjustment: An Analysis of the Pending Adjustment of Global Imbalances ,"
Peterson Institute Working Paper Series
WP05-6, Peterson Institute for International Economics.
[Downloadable!]
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