Description

This paper provides a historical perspective on the role of international reserves in low-income countries as a cushion against large external shocks over the last three decades - including the current global crisis. The results suggest that international reserves have played a role in buffering external shocks, with the resulting macroeconomic costs varying with the nature of the shock, the economy's structural characteristics, and the level of reserves.

Taxonomy

Economic policy , Financial crisis , International financial system , Monetary policy , Reserves

More publications in this series: Working Papers

More publications by: Valerio Crispolti ; George C. Tsibouris