Series: IMF Working Papers
Author(s): Javier Bianchi , Juan Carlos Hatchondo , and Leonardo Martinez
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 31 January 2013
Keywords: rollover risk, sovereign default, gross capital flows, reserve accumulation, reserve holdings, bonds, bond, International Lending and Debt Problems, Open Economy Macroeconomics,
Two striking facts about international capital flows in emerging economies motivate this paper: (1) Governments hold large amounts of international reserves, for which they obtain a return lower than their borrowin...