Download or read book Reserve Accumulation and International Monetary Stability Supplementary Information written by International Monetary Fund. Finance Dept. and published by International Monetary Fund. This book was released on 2010-04-21 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reform package. Comprehensive reform of Fund governance—encompassing quotas, ministerial engagement and oversight, the size and composition of the Executive Board, voting rules, management selection, and staff diversity—is essential to enhancing the Fund’s long-term legitimacy and effectiveness. Although the elements of such a reform are being discussed sequentially, and some could be taken up sooner, most will need to be decided as a package, given the linkages and trade-offs.

Download or read book Reserve Accumulation written by Thomas Klitgaard and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many central banks - particularly those in Japan and the emerging Asian nations - have been building up their holdings of foreign currency assets. These holdings, known as foreign exchange reserves, may help countries stabilize their currencies, but they can also lead to investment losses for the central banks. The large share of dollar assets among reserve holdings has made foreign central banks important players in U.S. financial markets.

Download or read book Reserve Accumulation and International Monetary Stability written by International Monetary Fund. Strategy, Policy, & Review Department and published by International Monetary Fund. This book was released on 2010-04-21 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since its last report to the IMFC in October 2009, the IEO has completed its evaluation report on IMF Interactions with Member Countries and finalized issues papers for evaluations on the IMF Performance in the Run-up to the Current Financial and Economic Crisis and Research at the IMF: Relevance and Utilization. On February 1, Moisés Schwartz assumed his duties as the third Director of the IEO.

Download or read book Accumulation of International Reserves in Emerging Markets written by Eugen Dimant and published by GRIN Verlag. This book was released on 2011-02 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Essay from the year 2010 in the subject Economics - Finance, grade: 1.3, University of Paderborn, course: International Finance, language: English, abstract: In the aftermath of various crises such as the Asian financial crisis at the end of the nineties, which had a huge impact on the national and globalized political economies worldwide, a process of massive reserve accumulation started, especially in East Asia [Bar-Ilan/Marion 2009: 802]. This process of reserve accumulation initiated a rapid change of the world's pattern causing changing demands that need to be handled since the beginning of the new century. The so called globalized world realized that not only the power they were given to affect own policies and long term contingency approaches should be taken into account, but also they had to admit that intergovernmental interaction needs to play a decisive role in every deliberation of political and financial activity. Having the present economic situation in mind, almost every day new banks and financial institutions are collapsing while driving down the world further in a downward spiral. Obviously, the confidence and reliance on the conceptual skills concerning financial matters is suffering tremendously ever since these crises and need to be reestablished contemporarily in order to stimulate the indispensable demand for goods and services. Since 1997, the emerging markets have boosted their international reserve holdings by 60% [Walters/Cruz 2008: 665] and even the developing nations increased their foreign exchange reserves from around 8% in the 80s to almost 30% of GDP in 2004 [Rodrik 2006: 4]. Therefore, this paper will have a closer look on what the immanent theoretical justifications declare from the economical point of view and clarify what effects this process has especially on the Brazilian economy. The reason for having this discussion is the fact that "reserve inadequacy could affect individual countries differently" and thereby ea

Download or read book Central Bank Reserve Management written by Age Bakker and published by Edward Elgar Publishing. This book was released on 2007-01-01 with total page 271 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book addresses the welfare gains and costs of accumulating foreign exchange reserves and the implications for the functioning of the global financial system. The tremendous growth of central bank reserves has led to an increased focus on raising returns in addition to the traditional preference central banks have for maintaining liquid portfolios. Issues such as asset and currency diversification, the impact of new accounting rules and the profit distribution agreements with the government are analysed, adding new insights to the current debate on the optimal size of central bank reserves. This book brings together a wide range of experts from central banks, investment banks and the academic community.

Download or read book Reserve Accumulation written by J. A. H. de Beaufort Wijnholds and published by . This book was released on 2007 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether the level of reserves in emerging market countries has become excessive. It presents a discussion of "adequacy" versus "excessive" levels of reserves, and presents calculations of reserve adequacy for a large number of emerging market countries. Two categories of countries can be distinguished: i) those whose reserves have grown on account of a need for self-insurance against financial crises, and which tend to be reasonably in line with adequacy measures (mainly Latin American countries and countries in central and eastern Europe), and ii) those whose reserve accumulation is nowadays primarily the result of rapid export-led growth supported by a lack of exchange rate flexibility. This is especially the case for several emerging Asian countries, whose reserve levels have grown far beyond what can reasonably considered adequate. Various opinions on Asian exchange rate and reserves policies are examined, and the costs and benefits of currency undervaluation are assessed. Attention is also paid to the composition of the reserves. The paper concludes by bringing together the various strands of the analysis and enumerating the main implications of large-scale reserve accumulation for the international monetary system.

Download or read book Reserve Accumulation written by Johannes de Beaufort Wijnholds and published by . This book was released on 2009 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether the level of reserves in emerging market countries has become excessive. It presents a discussion of adequacy versus excessive levels of reserves, and presents calculations of reserve adequacy for a large number of emerging market countries. Two categories of countries can be distinguished: i) those whose reserves have grown on account of a need for self-insurance against financial crises, and which tend to be reasonably in line with adequacy measures (mainly Latin American countries and countries in central and eastern Europe), and ii) those whose reserve accumulation is nowadays primarily the result of rapid export-led growth supported by a lack of exchange rate flexibility. This is especially the case for several emerging Asian countries, whose reserve levels have grown far beyond what can reasonably considered adequate. Various opinions on Asian exchange rate and reserves policies are examined, and the costs and benefits of currency undervaluation are assessed. Attention is also paid to the composition of the reserves. The paper concludes by bringing together the various strands of the analysis and enumerating the main implications of large-scale reserve accumulation for the international monetary system.

Download or read book Accumulation of International Reserves in Emerging Markets written by Eugen Dimant and published by GRIN Verlag. This book was released on 2011-02-02 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Scientific Essay from the year 2010 in the subject Economics - Finance, grade: 1.3, University of Paderborn, course: International Finance, language: English, abstract: In the aftermath of various crises such as the Asian financial crisis at the end of the nineties, which had a huge impact on the national and globalized political economies worldwide, a process of massive reserve accumulation started, especially in East Asia [Bar-Ilan/Marion 2009: 802]. This process of reserve accumulation initiated a rapid change of the world’s pattern causing changing demands that need to be handled since the beginning of the new century. The so called globalized world realized that not only the power they were given to affect own policies and long term contingency approaches should be taken into account, but also they had to admit that intergovernmental interaction needs to play a decisive role in every deliberation of political and financial activity. Having the present economic situation in mind, almost every day new banks and financial institutions are collapsing while driving down the world further in a downward spiral. Obviously, the confidence and reliance on the conceptual skills concerning financial matters is suffering tremendously ever since these crises and need to be reestablished contemporarily in order to stimulate the indispensable demand for goods and services. Since 1997, the emerging markets have boosted their international reserve holdings by 60% [Walters/Cruz 2008: 665] and even the developing nations increased their foreign exchange reserves from around 8% in the 80s to almost 30% of GDP in 2004 [Rodrik 2006: 4]. Therefore, this paper will have a closer look on what the immanent theoretical justifications declare from the economical point of view and clarify what effects this process has especially on the Brazilian economy. The reason for having this discussion is the fact that “reserve inadequacy could affect individual countries differently” and thereby each country “opted to hold more reserves than others and it seemed only natural to ask at what point reserves became inadequate; or indeed excessive” [Bird/Rajan 2003: 873]. Consecutively the different reason and goals for performing reserve accumulation will be discussed in an idiosyncratic sense.

Download or read book Shifting Motives written by Mr.Atish R. Ghosh and published by International Monetary Fund. This book was released on 2012-01-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why have emerging market economies (EMEs) been stockpiling international reserves? We find that motives have varied over time?vulnerability to current account shocks was relatively important in the 1980s but, as EMEs have become more financially integrated, factors related to the magnitude of potential capital outflows have gained in importance. Reserve accumulation as a by-product of undervalued currencies has also become more important since the Asian crisis. Correspondingly, using quantile regressions, we find that the reason for holding reserves varies according to the country's position in the global reserves distribution. High reserve holders, who tend to be more financially integrated, are motivated by insurance against capital account rather than current account shocks, and are more sensitive to the cost of holding reserves than are low-reserve holders. Currency undervaluation is a significant determinant across the reserves distribution, albeit for different reasons.

Download or read book Reserve Accumulation Growth and Financial Crises written by Gianluca Benigno and published by . This book was released on 2012 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays on the Dynamics of International Reserve Accumulation in Emerging Market Economies written by Rajeswari Sengupta and published by . This book was released on 2011 with total page 266 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Estimating the Demand for Reserve Assets Across Diverse Groups written by Ms.Rina Bhattacharya and published by International Monetary Fund. This book was released on 2018-03-09 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper takes a fresh look at the determinants of reserves holding with the aim of highlighting similarities and differences in the motives for holding reserves among emerging markets (EMs), advanced economies (AEs), and low-income countries (LICs). We apply two panel estimation techniques: fixed effects (FE) and common correlated effects pooled mean group (CCEPMG). FE regression results suggest that precautionary savings motives, both current account- and capital account-related, are generally the most important determinants of reserves holding across country groups and that their importance has increased for AEs and LICs since the global financial crisis while receding for EMs. Mercantilist motives matter mostly for EMs. Intertemporal motives have been gaining importance everywhere over time. The CCEPMG results confirm the importance of precautionary motives and suggest that current account motives matter only for EMs and LICs and capital account motives matter for all groups while being more important for EMs in both the shortand long runs. The CCEPMG results also point to the importance of taking into account unobserved common factors that affect coefficient estimates and the dynamic process through which reserves adjust to changes. At about 0.6, the speed of adjustment to the long-run equilibrium implies that more than half of the gap between actual and desired reserve holdings is closed within a year.

Download or read book Achieving Price Financial and Macro Economic Stability in South Africa written by Nombulelo Gumata and published by Springer Nature. This book was released on 2021-05-27 with total page 556 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the macro-financial effects of central bank balance sheets, macro-prudential tools, and financial regulation in South Africa. How employment can be maximised while keeping inflation low and stable is examined in relation to the structural changes required to alter the composition of South African bank balance sheets. Quantitative methods and approaches are utilised to highlight the impact of suggested policies. This book aims to outline strategies and policy interventions that can help achieve the National Development Plan in South Africa. It will be of interest to researchers and policymakers working within development economics, African economics, development finance, and financial policy.

Download or read book Optimal Fiscal Spending and Reserve Accumulation Policies under Volatile Aid written by Ioana Moldovan and published by International Monetary Fund. This book was released on 2019-06-11 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the optimal setting of fiscal spending and foreign exchange rate intervention policies in response to volatile foreign aid, in a small open economy model that incorporates typical features of low-income countries. Within a class of policy rules, it jointly considers the optimal aid spending and international reserve accumulation policies. The results show that it is optimal to adjust government spending gradually in response to unpredictable fluctuations in aid, while partially accumulating foreign exchange reserves to offset Dutch disease effects. Also, allocating relatively more of the government spending to productive public investment, and less to government consumption, is welfare improving.

Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Download or read book Optimal Fiscal Spending and Reserve Accumulation Policies under Volatile Aid written by Ioana Moldovan and published by International Monetary Fund. This book was released on 2019-06-11 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the optimal setting of fiscal spending and foreign exchange rate intervention policies in response to volatile foreign aid, in a small open economy model that incorporates typical features of low-income countries. Within a class of policy rules, it jointly considers the optimal aid spending and international reserve accumulation policies. The results show that it is optimal to adjust government spending gradually in response to unpredictable fluctuations in aid, while partially accumulating foreign exchange reserves to offset Dutch disease effects. Also, allocating relatively more of the government spending to productive public investment, and less to government consumption, is welfare improving.

Download or read book Asset Management at Central Banks and Monetary Authorities written by Jacob Bjorheim and published by Springer Nature. This book was released on 2020-09-07 with total page 491 pages. Available in PDF, EPUB and Kindle. Book excerpt: In response to the Global Financial Crisis and the COVID-19 pandemic, central banks have used all available instruments in their monetary policy tool-kit to avoid financial market disruptions and a collapse in real economic activities. These actions have expanded the size of their balance sheets and altered the composition of the asset-side. This edited book highlights how these assets are managed, providing an intellectual and practical contribution to an under-researched field of central bank responsibilities. It first reviews the sources and uses of domestic and international assets and how they complement—or possibly conflict with—the implementation of monetary policy goals. Next, the book examines the asset management mandate in a balance sheet context before turning to the investment decision-making process from strategic and tactical asset allocation to investment strategies, risk management, governance, reporting and control. Finally, it presents new developments in the field of managing assets at central banks. The individual chapters are written by central bankers, academics, and representatives from International Financial Institutions, each representing a particular aspect of the asset management practice. Practical and powerful insights from a hall of fame of investors, central bankers and scholars, are packed into this one volume. If you could have only one book on central bank asset management, this would be it. —Peter R. Fisher, Clinical Professor, Tuck School of Business at Dartmouth Jacob Bjorheim draws on his long experience in sovereign asset management to pull together a rich collection of insights from a broad range of expertise. Asset management at central banks has evolved and expanded considerably over the past decade. This book is a timely source of information and guidance. —Guy Debelle, Deputy Governor, Reserve Bank of Australia Central bank balance sheets have grown at a tremendous pace over the last decade and a half. Drawing on contributions from scholars and experienced central bankers from around the world, this timely and insightful book sheds light on how central banks are, and should be, managing their growing balance sheets. —Kjell G. Nyborg, Chaired Professor of Finance, University of Zurich, Author of Collateral Frameworks: The Open Secret of Central Banks Central banks and monetary authorities are charged with, and being held accountable for, managing portfolios of foreign currency assets of unprecedented size. The essays in this admirable book, written by some of the worlds most highly experienced officials, cover the full range of why and how this is currently being done and how new developments are affecting old practices. Interesting conceptually and immensely useful practically. —William White, Senior Fellow at the C.D. Howe Institute, former Head of the Monetary and Economic Department with the Bank for International Settlements (BIS) and chairman of the Economic and Development Review Committee at the OECD An excellent and timely review of modern international reserve management, which ought to be read by everyone working with, or simply interested in, international asset management and finance as well as monetary and economic policy. The spectrum of authors is broad and their combined insight is very valuable. —Tom A. Fearnley, Investment Director, Norwegian Ministry of Finance With “Asset Management at Central Banks and Monetary Authorities”, Jacob Bjorheim has achieved an editorial tour de force. The book assembles the insightful views of the leading experts in the field, both from an academic and practitioners’ perspective. It bridges the gap between the macroeconomics of central banks and the financial management of their reserves. A must read to understand how central banks are special in the group of institutional investors. —Eric Bouyé, Head of Asset Allocation and Quantitative Strategies, Treasury Department, The World Bank The balance sheet is a large and important toolbox for any central bank and specifically the foreign exchange reserves constitute one the more powerful of these tools. This book provides excellent insight in the various perspectives of managing reserves at a central bank. —Heidi Elmér, Director of Markets Department, Severiges Riksbank The world of international reserves has changed since the global financial crisis. In this volume, Jacob Bjorheim has assembled a stellar cast of experts to explain how and what that means for reserves management. With chapter authors like Andrew Ang, Jennifer Johnson-Calari, Robert McCauley, Ravi Menon, Simon Potter and Philip Turner, it is a book that every reserve manager must read. —Eli Remolona, Professor of Finance and Director of Central Banking, Asia School of Business in collaboration with MIT Sloan Jacob Bjorheim has succeeded in bringing together a first-class team of experts, and organising their contributions in an articulated journey from the central banks’ policy mandate to their asset management practices. An indispensable post-crisis update of the subject and a a required reading for anyone professionally involved with central bank’s asset management, or simply curious about a topic benefitting otherwise from limited research. —Louis de Montpellier, Former Global Head, Official Institutions Group, SSGA, and former Deputy Head, Banking Department, Bank for International Settlements (BIS), Basel At last, a book that shares with a wider audience, deep insight in a unique, challenging and ethical approach of asset management developed and implemented in the secretive world of central banks. If you wonder how to manage funds that stand ready for use at short notice in times of stress then this book is for you. Two features make it such a valuable read and a must-have reference: First, the very comprehensive list of themes covered from a rich diversity of angles. Second, the very impressive list of prominent institutions and authors that have contributed and shared their analysis and practical approaches of the issues presented. What is better than to get the information directly from first-hand practitioners, experts and managers themselves in their own words? —Jean-Pierre Matt, Former Head of Financial Analysis at the Bank for International Settlements (BIS) and founder of Quanteis This book holds the promise to become the go-to guide for anyone wishing to learn more about the management of official foreign exchange reserves. Central bankers in particular, but also those providing services to central banks, will find benefit from the broad scope in subject matter and varied perspectives being presented. I am yet to see a compendium on official reserve management with similar reach in subject matter. —Leon Myburgh, Former Head Financial Markets Department, South African Reserve Bank (SARB), Pretoria This is an immensely timely book at a time when central bank operations, and their balance sheets, remain “larger for longer”. Following the Financial Crisis 10 years ago, and with the Covid-19 Recession about to break, central bank balance sheets are at the forefront of the authorities’ response to economic issues as never before. Yet the management of their now large-scale assets remains a little known and little studied area. The authors of this book combine extensive technical and practical experience, and their observations will fill an important gap in the literature at a critical time. —Freyr Hermannsson, Former Head of Treasury, Central Bank of Iceland, Reykjavík