Can governments sleep more soundly when holding international reserves? A banking and financial vulnerabilities perspective - Groupe de Recherche en Droit, Economie et Gestion Access content directly
Journal Articles Applied Economics Year : 2023

Can governments sleep more soundly when holding international reserves? A banking and financial vulnerabilities perspective

Abstract

We use a sample of 40 developing and emerging countries over the period 1995- 2015 to assess the effectiveness of international reserve holding as a crisis mitigator. We test the relevance of the reserve accumulation decreasing returns assumption by estimating the most recent version of the PSTR model. We find that increasing stocks of international reserves allows domestic authorities to mitigate the negative impacts of financial and banking vulnerabilities on GDP growth rates leading to reject the decreasing returns assumption. This evidence is robust to sensitivity checks.
Fichier principal
Vignette du fichier
Applied Economics_2023.pdf (911.82 Ko) Télécharger le fichier
Origin : Files produced by the author(s)

Dates and versions

hal-03945433 , version 1 (22-03-2023)

Identifiers

Cite

Audrey Sallenave, Jean-Pierre Allegret, Tolga Omay. Can governments sleep more soundly when holding international reserves? A banking and financial vulnerabilities perspective. Applied Economics, 2023, pp.1-15. ⟨10.1080/00036846.2023.2177597⟩. ⟨hal-03945433⟩
31 View
11 Download

Altmetric

Share

Gmail Facebook Twitter LinkedIn More