Series: IMF Working Papers
Author(s): Jun Kim
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2008
Keywords: sudden stop, country insurance, optimal reserves, global game, probability, short-term debt, calibration, current account, reserve accumulation,
This paper presents a simple model of optimal reserves that can be easily calibrated to compute optimal reserves as well as the implied probability of a sudden stop for given reserves. The model builds upon the glo...