Download or read book The High Demand for International Reserves in the Far East written by Joshua Aizenman and published by . This book was released on 2002 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores econometric and theoretical interpretations for the relatively high demand for international reserves by countries in the Far East and the relatively low demand by some other developing countries. Using a sample of about 125 developing countries, we show that reserve holdings over the 1980-1996 period seem to be the predictable outcome of a few key factors, such as the size of international transactions, their volatility, the exchange-rate arrangement, and political considerations. The estimating equation does a good job of predicting reserve holdings in Asia before the 1997 financial crisis. After the crisis, the estimating equation significantly under-predicts the reserve holdings of several key Far East countries, as one might expect from the Lucas Critique. This under-prediction is consistent with models explaining reserve demand in developing countries. Specifically, we show that sovereign risk and costly tax collection to cover fiscal liabilities lead to a relatively large precautionary demand for international reserves. In the aftermath of a crisis, countries that have to deal with higher perceived sovereign risk and higher fiscal liabilities (both funded and unfunded) will opt to increase their demand for reserves. The models also help us understand why some developing countries do not hold large precautionary reserve balances in the aftermath of crises. Countries with high discount rates, political instability or political corruption find it optimal to hold smaller precautionary balances. We also show that models that incorporate loss aversion predict a relatively large demand for international reserves. Hence, if a crisis increases the volatility of shocks and/or loss aversion, it will greatly increase the demand for international reserves. Consequently, we conclude that the puzzling' pattern in international reserve holdings is reasonably explained by the extended models described in this paper.

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 Assessing Reserve Adequacy written by International Monetary Fund and published by International Monetary Fund. This book was released on 2011-02-14 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dramatic increase in reserves holdings over the past decade has resumed since the global financial crisis, even at an accelerated pace. While the crisis has heightened perceptions of the importance of holding adequate reserves, there is little consensus on what constitutes an adequate level from a precautionary perspective: traditional metrics are narrowly-based and often provide conflicting signals; while newer approaches tend to be hostage to stylized modeling assumptions and calibrations. As a result, assessments tend to rely on comparisons with peers, probably amplifying the upward trend as perceived needs rise in line with actual holdings.

Download or read book IMF Staff Papers Volume 56 No 3 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2009-07-31 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: Studies of the impact of trade openness on growth are based either on crosscountry analysis—which lacks transparency—or case studies—which lack statistical rigor. This paper applies a transparent econometric method drawn from the treatment evaluation literature (matching estimators) to make the comparison between treated (that is, open) and control (that is, closed) countries explicit while remaining within a statistical framework. Matching estimators highlight that common cross-country evidence is based on rather far-fetched country comparisons, which stem from the lack of common support of treated and control countries in the covariate space. The paper therefore advocates paying more attention to appropriate sample restriction in crosscountry macro research.

Download or read book How much should I hold Reserve Adequacy in Emerging Markets and Small Islands written by MissNkunde Mwase and published by International Monetary Fund. This book was released on 2012-08-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the drivers of reserves in emerging markets (EMs) and small island (SIs) and develops an operational metric for estimating reserves in SIs taking into account their unique characteristics. It uses quantile regression techniques to allow the estimated factors driving reserves holdings to vary along the reserves’ holding distribution and tests for equality among the slope coefficients of the various quantile regressions and the overall models. F-tests comparing the inter-quantile differences could not reject the that the models for the different quantiles of SIs reserve distribution were similar but this was rejected for EMs distribution suggesting that models explaining drivers of reserve holdings should take into account the country’s reserve holdings. Empirical analysis suggests that the metric performs better than existing metrics in reducing crisis probabilities in SIs.

Download or read book IMF Staff Papers Volume 52 No 2 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2005-08-29 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines contractionary currency crashes in developing countries. It explores the causes of India’s productivity surge around 1980, more than a decade before serious economic reforms were initiated. The paper finds evidence that the trigger may have been an attitudinal shift by the government in the early 1980s that, unlike the reforms of the 1990s, was pro-business rather than pro-market in character, favoring the interests of existing businesses rather than new entrants or consumers. A relatively small shift elicited a large productivity response, because India was far away from its income possibility frontier.

Download or read book Exorbitant Privilege written by Barry Eichengreen and published by Oxford University Press. This book was released on 2011-01-07 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is, as a critic of U.S.

Download or read book World Economic Outlook September 2003 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2003-04-10 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: The World Economic Outlook, published twice a year in English, French, Spanish, and Arabic, presents IMF staff economists' analyses of global economic developments during the near and medium term. Chapters give an overview of the world economy; consider issues affecting industrial countries, and economics in transition to market; and address topics of pressing current interest. Annexes, boxes, charts, and an extensive statistical appendix augment the text.

Download or read book Exit from Hegemony written by Alexander Cooley and published by Oxford University Press. This book was released on 2020-02-28 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: We live in a period of great uncertainty about the fate of America's global leadership. Many believe that Donald Trump's presidency marks the end of liberal international order-the very system of global institutions, rules, and values that shaped the American international system since the end of World War II. Trump's repeated rejection of liberal order, criticisms of long-term allies of the US, and affinity for authoritarian leaders certainly undermines the American international system, but the truth is that liberal international order has been quietly eroding for at least 15 years. In Exit from Hegemony, Alexander Cooley and Daniel Nexon develop a new, integrated approach to understanding the rise and decline of hegemonic orders. Their approach identifies three distinct ways in which the liberal international order is undergoing fundamental transformation. First, Russia and China have targeted the order, positioning themselves as revisionist powers by establishing alternative regional institutions and pushing counter-norms. Second, weaker states are hollowing out the order by seeking patronage and security partnership from nations outside of the order, such as Saudi Arabia and China. Even though they do not always seek to disrupt American hegemony, these new patron-client relationships lack the same liberal political and economic conditions as those involving the United States and its democratic allies. Third, a new series of transnational networks emphasizing illiberalism, nationalism, and right-wing values increasing challenges the anti-authoritarian, progressive transnational networks of the 1990s. These three pathways erode the primacy of the liberal international order from above, laterally, and from below. The Trump administration, with its "America First" doctrine, accelerates all three processes, critically lessening America's position as a world power.

Download or read book Handbook of Asian Finance written by David Lee Kuo Chuen and published by Academic Press. This book was released on 2014-05-12 with total page 413 pages. Available in PDF, EPUB and Kindle. Book excerpt: Asia's miraculous recovery from the 1997 crisis ushered in unexpected transformations to its economies and financial sectors. The reasons many Asian countries are growing above 6%, with double-digit growth for a year or two in-between, are investigated by this extensive research collection. The Handbook of Asian Finance covers the most interesting issues raised by these growth rates. From real estate prices and the effects of trading technologies for practitioners to tax evasion, market manipulation, and corporate governance issues, expert scholars analyze the ways that the region is performing. Offering broader and deeper coverage than other handbooks, the Handbook of Asian Finance explains what is going on in Asia today. - Devotes significant attention to the systematic risk created by banks' exposure to links between real estate and other sectors - Explores the implications implicit in the expansion of sovereign funds and the growth of the hedge fund and real estate fund management industries - Investigates the innovations in technology that have ushered in faster capital flow and larger trading volumes

Download or read book Central Banks as Economic Institutions written by Jean-Philippe Touffut and published by Edward Elgar Publishing. This book was released on 2008-01-01 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: Theories and practices in central banking and monetary policy have changed radically over recent decades with independence and inflation targeting as the new keywords. This book offers interesting perspectives on the drivers of this development and its implication. It addresses contemporary questions on accountability, transparency and objectives for monetary policy as well as current policy problems related to globalization and financial imbalances. The book is topical, insightful and well written a must for everybody with an interest in central banking and monetary policy. Torben M. Andersen, University of Aarhus, Denmark The number of central banks in the world is approaching 180, a tenfold increase since the beginning of the twentieth century. What lies behind the spread of this economic institution? What underlying process has brought central banks to hold such a key role in economic life today? This book examines from a transatlantic perspective how the central bank has become the bank of banks. Thirteen distinguished economists and central bankers have been brought together to evaluate how central banks work, arrive at their policies, choose their instruments and gauge their success in managing economies, both in times of crisis and periods of growth. Central banks have gained greater independence from government control over the last 20 years. This widespread trend throws up new questions regarding the foundations, prerogatives and future of this economic institution. This book provides a better understanding of the current financial crisis through the in-depth study of the central bank. Researchers in the fields of monetary theory, monetary policy and central banking will find this volume of great interest. It will also appeal to students of economics, political economy, banking and finance, as well as economists, academics, and public policy advisers and analysts.

Download or read book The Oxford Companion to the Economics of China written by Shenggen Fan and published by Oxford University Press, USA. This book was released on 2014 with total page 645 pages. Available in PDF, EPUB and Kindle. Book excerpt: 99 entries written by leading China scholars. Topics include: The China Model, Future Prospects, Global Economy, Trade, Macroeconomics and Finance, Urbanization, Industry and Markets, Agriculture, Land, Infrastructure and Environment, Labour, Wellbeing and Inequality, Health and Education, Gender, Regional Divergence, and Provincial studies.

Download or read book Asian Economy and Finance written by Dilip K. Das and published by Springer Science & Business Media. This book was released on 2005-03-25 with total page 344 pages. Available in PDF, EPUB and Kindle. Book excerpt: Topicality of Asian economy has refused to fade for almost four decades; if anything it has been levitating. The Asian economy has changed markedly since the economic and financial crisis of 1997-1998 and is continuing to evolve. As a scholarly subject matter, Asian economy has not stopped attracting academicians, policy mandarins, decision makers in the arena of business and students of Asian economy. The Asian crisis was a cataclysmic event for the region and brought to the surface several systemic limitations, like those in the financial sector, corporate governance, regulatory oversight, legal framework, and exchange rate management. Managers of Asian economy need to get to the bottom of these acutely problematical systemic issues. Additionally, Asian economies need to change with the demands of time and devise their post-crisis development strategy. Asia’s growth model, that served it so well for four decades, is overdue for renewal so that it can re-strengthen its bonds with the ever-evolving regional and global economic reality. The old growth model is likely to be less relevant and effective in the post-crisis future of the Asian economies. It is sure to run into the wall of diminishing returns. An outstanding feature of Asian Economy and Finance: A Post-Crisis Perspective is that unlike most Asia-related books, it is written in a comprehensive and authoritative manner and covers large areas of Asian macro-economy and finance. The noteworthy areas of focus include global and intra-regional trade and investment, as well as financial and monetary aspects. In-depth discussions have been provided on regional integration through expanding trade, financial flows, regional production networks, financial and monetary co-operation. In taking a contemporary or post-crisis view of the Asian economy, this book offers the newest knowledge related to relevant themes on the Asian economies as well as the latest concepts. In a succinct manner, this book deals with the principal normative and positive strands with which one need to be properly familiar in this subject area. This tightly written volume covers a great deal of ground and imparts knowledge on the Asian economy related themes to students, researchers and policy makers alike. Asian Economy and Finance: A Post-Crisis Perspective is neither overly technical nor model-oriented. It is easy to access for the target readership because of its descriptive analysis style, which stops short of mathematical formulations and econometric modeling. Many students and other readers who have good analytical minds and sound knowledge of economic principles feel lost in mathematical formulations. This writing style makes it accessible to a much larger number of readers.

Download or read book Information Technology and Economic Development written by Kurihara, Yutaka and published by IGI Global. This book was released on 2007-07-30 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the impact IT has on politics, education, sociology, and technology. Focuses on the benefits of IT for developing countries, whose problems must be solved, and obstacles overcome in order to further IT advancement.

Download or read book Shaping Policy Reform and Peer Review in Southeast Asia Integrating Economies Amid Diversity written by OECD and published by OECD Publishing. This book was released on 2008-08-25 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication examines the possible application of peer reviews to address regional and domestic challenges in Southeast Asia.

Download or read book Working Capital Management written by Bhalla V.K. and published by S. Chand Publishing. This book was released on 2014 with total page 916 pages. Available in PDF, EPUB and Kindle. Book excerpt: Working Capital Management: An Overview 2. A Valuation Framework 3. Working Capital Policies 4. Cash Management Systems: Collection Systems 5. Cash Management Systems: Cash Concentration Systems 6. Cash Management Systems: Disbursement Systems 7. Forecasting Cash Flows 8. Corporate Liquidity And Financial Flexibility 9. Cash Management Optimisation Models 10. Receivables Management: Trade Credit 11. Receivables Management: Credit Granting Decisions 12. Monitoring Accounts Receivables 13. Payables Management And Instruments Of Short-Term Financing 14. Inventory Management 15. Programming Working Capital Management 16. Integrating Working Capital And Capital Investment Processes 17. Monetary System 18. Money Market In India 19. Banking System In India 20. Working Capital Control And Banking Policy ..... 27. Managing Short-Term International Financial Transactions Appendices Index

Download or read book Asian Economy and Finance written by Dilip K. Das-Gupta and published by Springer Science & Business Media. This book was released on 2006-03-30 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers the newest knowledge related to relevant themes on the Asian economies as well as the latest concepts. In a succinct manner, it deals with the principal normative and positive strands with which one need to be properly familiar in this subject area. The tightly written volume covers a great deal of ground and imparts knowledge on the Asian economy related themes to students, researchers and policy makers alike.