Cover IMF Working Papers
Buy Book in Print
A Fiscal Price Tag for International Reserves
Author:
Mr. David Hauner
Search for other papers by Mr. David Hauner in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 081
Language:
English
Publication Date:
01 Apr 2005
DOI:
https://doi.org/10.5089/9781451861006.001
ISBN:
9781451861006
ISSN:
1018-5941
Pages:
29
Keywords:
WP; return; GDP ratio; central bank; rate of return; reserves coefficient
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (576.3 KB) Download Epub
This paper examines the (quasi-)fiscal impact of the (opportunity) cost of international reserves. It proposes a conceptual framework, with particular emphasis on two hitherto somewhat neglected aspects: a more appropriate measure of gross opportunity cost, and potential savings from lower external debt spreads that countries "buy" by holding reserves. The framework is then applied to 100 countries over 1990-2004. The results suggest that a turning point has been reached in recent years: while most countries made money on their reserves during 1990-2001, most have been losing money during 2002-04.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund