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Financial Crisis Management in Emerging Countries: Optimal Level of International Reserves and Ex Ante Conditions for an International Lender of Last Resort Intervention

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  • Ben Hassine Khalladi, hela

Abstract

In this paper, we approach financial crises from two different aspects: Prevention and Management. Prevention from crises, here sudden stops, will be carried out through international reserves accumulation (Jeanne & Rancière model, 2006). The section of crises management will be undertaken by an International Lender of last Resort (ILOLR), here the International Monetary Fund (IMF). Our study shows that under an optimal level of international reserves, countries should resort to international lending, but the efficiency of this latter depends on countries’ eligibility, i.e their external, budget and financial sustainability.

Suggested Citation

  • Ben Hassine Khalladi, hela, 2015. "Financial Crisis Management in Emerging Countries: Optimal Level of International Reserves and Ex Ante Conditions for an International Lender of Last Resort Intervention," MPRA Paper 96151, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96151
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial crises; sudden stops; IMF; international reserves;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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