000	02177cam  2200397zi 4500
001	9.880178
003	CaOODSP
005	20221107165718
006	m     o  d f
007	cr cn|||||||||
008	191004t20192019onca    ob   f000 0 eng d
040	|aCaOODSP|beng|erda|cCaOODSP
041	0 |aeng|beng|bfre
086	1 |aFB3-5/2019-43E-PDF
100	1 |aArce, Fernando, |eauthor.
245	12|aA macroprudential theory of foreign reserve accumulation / |cby Fernando Arce, Julien Bengui and Javier Bianchi.
264	1|aOttawa, Ontario, Canada : |bBank of Canada = Banque du Canada, |c2019.
264	4|c©2019
300	|a1 online resource (ii, 29 pages) : |bcolour illustrations.
336	|atext|btxt|2rdacontent
337	|acomputer|bc|2rdamedia
338	|aonline resource|bcr|2rdacarrier
490	1 |aBank of Canada staff working paper, |x1701-9397 ; |v2019-43
500	|a"October 2019."
504	|aIncludes bibliographical references (pages 25-27).
520	3 |a"This paper proposes a theory of foreign reserves as macroprudential policy. We study an open-economy model of financial crises in which pecuniary externalities lead to overborrowing, and show that by accumulating international reserves, the government can achieve the constrained-efficient allocation. The optimal reserve accumulation policy leans against the wind and significantly reduces the exposure to financial crises. The theory is consistent with the joint dynamics of private and official capital flows, both over time and in the cross-section, and can quantitatively account for the recent upward trend in international reserves"--Abstract, page ii.
546	|aIncludes abstracts in English and French.
692	07|2gccst|aPublic finance
692	07|2gccst|aFinancial services
692	07|2gccst|aRisk management
692	07|2gccst|aModels
700	1 |aBengui, Julien, |eauthor.
700	1 |aBianchi, Javier, |eauthor.
710	2 |aBank of Canada.
830	#0|aStaff working paper (Bank of Canada)|v2019-43.|w(CaOODSP)9.806221
856	40|qPDF|s2.07 MB|uhttps://publications.gc.ca/collections/collection_2019/banque-bank-canada/FB3-5-2019-43-eng.pdf