Series: IMF Working Papers
Author(s): Era Dabla-Norris , Jun Kim , and Kazuko Shirono
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 2011
Keywords: Reserve adequacy, optimal level of reserves, low-income countries, exchange rate, exchange rate regime, exchange rate regimes, external shocks, commodity exporters, Macroeconomic Analyses of Economic Development,
This paper develops a cost-benefit approach that helps to quantify the optimal level of international reserves in low-income countries, focusing on the role of reserves in preventing and mitigating absorption drops...